ALIVEC LAB LTD

Executive Summary

Alivec Lab Ltd exhibits significant financial weakness with persistent negative net assets and severe liquidity constraints. The company’s inability to cover current liabilities from current assets and lack of operational cash flow raises substantial credit risk. Credit approval is not recommended at this stage without clear evidence of financial restructuring or improved cash generation.

ALIVEC LAB LTD - Analysis Report

Company Number: 13332579

Analysis Date: 2025-07-29 19:52 UTC

1. Credit Opinion: DECLINE
   Alivec Lab Ltd’s financial position is weak and deteriorating with persistent net liabilities and negative shareholders’ funds. The company’s current liabilities substantially exceed current assets, resulting in a large working capital deficit. This raises significant doubts about its ability to meet short-term obligations and service any new credit facilities. Additionally, the company has no employees generating operational revenue, which further undermines business resilience and cash flow generation. Given the negative equity position and ongoing losses, extending credit would carry high risk without substantial improvement or external support.

2. Financial Strength:
   The balance sheet shows fixed assets of approximately £1.11 million, likely in real estate, but these are heavily leveraged. Current liabilities exceed current assets by over £865k, indicating a severe liquidity shortfall. Total creditors including long-term debt amount to around £1.14 million, while net assets are negative at £31,712 as of April 2024, worsening from previous years. The company’s negative shareholders’ funds confirm an erosion of capital, reflecting accumulated losses or impairment. There is no sign of equity injection or retained profits to strengthen the financial base.

3. Cash Flow Assessment:
   The company’s cash and other current assets are minimal (£2,438), while short-term debts are very high (£867,558). This imbalance signals poor liquidity and insufficient working capital to cover immediate liabilities. The absence of employees suggests limited operational activity and minimal internal cash generation. Without positive operating cash flow or external financing, Alivec Lab Ltd faces difficulty in meeting its financial obligations as they fall due, increasing the risk of default or insolvency.

4. Monitoring Points:

• Track changes in net current assets to detect any improvement in liquidity position.
• Monitor any new equity injections or debt restructuring that could stabilize the balance sheet.
• Watch for operational developments such as hiring or revenue generation that could support cash flow.
• Review directors’ reports and subsequent accounts for indications of turnaround strategies or worsening financial distress.
• Keep alert for overdue filings or changes in company status that may signal financial distress escalation.