ALLIANCE EXPORT LIMITED

Executive Summary

Alliance Export Limited is financially weak with negative net assets and liquidity heavily dependent on an interest-free parent loan. The company shows no signs of operational cash generation and has no assets or employees, indicating high credit risk. Without continued group support, the company’s ability to meet financial obligations is doubtful, leading to a credit recommendation to decline new facilities.

ALLIANCE EXPORT LIMITED - Analysis Report

Company Number: 13728559

Analysis Date: 2025-07-29 18:59 UTC

1. Credit Opinion: DECLINE
   Alliance Export Limited shows significant financial distress with a negative net asset position of £4,542 as of 31 March 2024, deteriorating from £818 positive net assets in the prior year. The company relies heavily on an interest-free loan of £3,880 from its immediate parent to meet obligations, indicating an inability to generate sufficient operating cash flow or repay external debt independently. The lack of employees and fixed assets, combined with consistently negative working capital, raises concerns about its viability and ability to service any credit facility. Furthermore, the company’s business model and financial trajectory suggest it is not self-sustaining and dependent on group support, which poses credit risk if group priorities shift.

2. Financial Strength:
   The balance sheet is weak. Current liabilities of £4,630 exceed current assets of £88, resulting in a net current liability position of £4,542. The company holds no tangible or intangible fixed assets, and its cash balance is minimal at £84. Shareholders’ funds are negative at £4,542, reflecting accumulated losses of £4,642. The loan from the parent company, while interest-free and repayable on demand, is substantial and highlights reliance on intra-group funding. The company’s negative equity and lack of asset backing undermine its financial strength.

3. Cash Flow Assessment:
   Liquidity is critically constrained. Cash on hand is only £84, insufficient to cover current liabilities of £4,630. The company has no employees or operating assets, indicating minimal or no internal cash generation. The parent company’s loan provides short-term funding but is not a sustainable source for ongoing liquidity. Working capital management is poor, with a negative net current asset position worsening from the prior year. Without group support, the company would likely face immediate cash flow distress.

4. Monitoring Points:

• Continued reliance on the parent company loan and any changes in group support policy.
• Trends in net current assets and cash balances, to detect improvements or further deterioration.
• Any operational developments indicating potential revenue generation or asset acquisitions.
• Director and shareholder actions regarding recapitalisation or restructuring plans.
• Filing timeliness and compliance with Companies House requirements as a proxy for management quality.