Company Number: 14298332

Analysis Date: 2025-07-20 15:37 UTC

1. Credit Opinion: DECLINE
   Allegra Ltd is a very recently incorporated entity (August 2022) classified as a private limited company and a holding company by SIC code. The latest filed accounts show minimal asset base (£300 fixed assets, £100 debtors) and current liabilities of £300, resulting in net current liabilities of -£200. The company’s net assets and shareholders’ funds stand at just £100, indicating a very weak capital base. The profit reported derives entirely from “other interest receivable” and not operating activities, suggesting no trading income or cash generation from core business operations. The absence of operating income and ongoing losses, coupled with minimal financial resources, signals high risk and inability to service debt or sustain operations without external capital injection.

2. Financial Strength:
   The balance sheet reveals a fragile financial position. Fixed assets consist solely of investments valued at £300. Current assets of £100 are insufficient to cover current liabilities of £300, leading to a negative working capital position (-£200). Net assets are minimal at £100, supported only by issued share capital. There is no retained earnings or reserves. The company has not generated operating profits and relies on interest income, which is not sustainable. The static financial position over the three reported years with no growth or improvement underscores a lack of financial robustness.

3. Cash Flow Assessment:
   There is no indication of cash flow from operating activities; income is from interest receivable only. The working capital deficit suggests potential liquidity constraints. With current liabilities exceeding current assets by £200, the company could face difficulties meeting short-term obligations. The absence of employees and trading activity implies little operational cash inflow. Dividends have been paid out equal to profits earned from interest income, which could further strain liquidity. Overall, cash flow generation is weak and uncertain, heightening risk in lending or extending credit.

4. Monitoring Points:

• Verify any future trading activities and income generation beyond interest receipts.
• Monitor working capital changes, particularly current asset and liability balances.
• Watch for any capital injections or changes in equity funding to strengthen the balance sheet.
• Track director and shareholder actions for signs of financial restructuring or new business development.
• Review subsequent year accounts for operating profit emergence or sustained losses.