Company Number: 12992235

Analysis Date: 2025-07-20 13:21 UTC

1. Risk Rating: MEDIUM

Justification: ALKOR Consulting Ltd is an active private limited company with a controlling director holding 75-100% ownership. The latest financials show a significant reduction in current assets and net assets compared to prior years, primarily due to a large dividend payment, which raises concerns about liquidity and sustainability. However, the company is not overdue on filings, indicating regulatory compliance.

2. Key Concerns:

• Sharp decline in current assets from £359k (2022) to £20k (2023), largely due to removal of £300k debtors and cash depletion, which may impair short-term liquidity.
• Large dividends (£280k in 2023) significantly reduced retained earnings and working capital, possibly restricting operational cash flow.
• Absence of debtors in 2023 raises questions about revenue recognition or payment delays; no detailed income statement is provided to clarify business performance.

3. Positive Indicators:

• The company remains compliant with filing deadlines for accounts and confirmation statements, showing good regulatory discipline.
• Positive net current assets and shareholders' funds at year-end 2023, albeit much reduced, indicate solvency is not immediately threatened.
• Single director control suggests streamlined decision-making and accountability.

4. Due Diligence Notes:

• Investigate reasons behind full write-off of debtors between 2022 and 2023 and whether this reflects revenue loss or accounting adjustments.
• Review cash flow statements and income details (absent here) to understand operational profitability and sustainability.
• Clarify the rationale and source of the large dividend payout and its impact on capital adequacy.
• Confirm ongoing client contracts and future revenue pipeline to assess business continuity risk.