Company Number: 13476806

Analysis Date: 2025-07-29 13:54 UTC

1. Risk Rating: HIGH
   Allington Services Limited shows significant liquidity concerns with a consistent negative net current asset position over the last three years, indicating potential difficulty in meeting short-term obligations. The company’s cash reserves are materially lower than current liabilities, and there is no evidence of profitability or cash inflows from operations to offset this.

2. Key Concerns:

• Negative Net Current Assets: The company has net current liabilities exceeding £120k for multiple years, which suggests it may struggle to cover short-term debts with available liquid assets.
• Limited Cash Reserves: Cash balances have decreased from £37,903 in 2023 to £30,617 in 2024 despite increasing liabilities, potentially signaling cash flow strain.
• Small Scale and Single Director Control: The company is very small with only one employee (the director), and the sole director holds 75-100% ownership and voting control, which concentrates operational and governance risk.

3. Positive Indicators:

• Increasing Shareholders’ Funds: Shareholders’ funds have grown from £13,461 in 2021 to £35,893 in 2024, suggesting some retained earnings or capital injections.
• Fixed Assets Holdings: The company holds tangible fixed assets valued at £161,613, which may provide some collateral value or business operational base.
• Up-to-date Filing Compliance: No overdue accounts or confirmation statements, indicating good regulatory compliance and corporate governance in terms of statutory filings.

4. Due Diligence Notes:

• Review the full income statement and cash flow statements (not filed publicly due to small company exemption) to assess operational profitability and cash generation capability.
• Investigate the nature and terms of the significant current liabilities (~£156k) to understand creditor exposure and payment schedules.
• Assess the valuation, liquidity, and usage of the fixed assets, especially the land and buildings valued at £150,813, to determine their role in business stability or potential to raise cash.
• Consider background checks or references on the sole director’s track record and any potential personal guarantees or related party transactions.
• Evaluate the industry context for SIC 93199 (Other sports activities) to understand market risks and revenue sustainability.