ALLISTE LTD

Risk Rating: LOW The company demonstrates strong financial health characterized by consistent, multi-year growth in net assets and a robust liquidity position. With net assets of £1.27 million against total liabilities of £639k, and a cash balance exceeding £873k, the solvency risk is minimal. Regulatory compliance is excellent, with filings up to date and no overdue documentation.

Key Concerns: * Concentration of "Other Debtors": Current assets include £644k categorized as "Other debtors" (representing roughly 35% of total assets). Without further breakdown, large other debtor balances can sometimes indicate related-party loans, intercompany balances, or prepayments that may not be readily realizable into cash. * Key Person Dependency: The company is entirely controlled and managed by Mr. and Mrs. Lamb, who collectively hold 76% of the shares and serve as the sole directors. This creates a concentrated key-person risk; the business's operational continuity and strategic direction are heavily reliant on two individuals. * Sector-Specific Pressures: Operating in freight transport (road and air), the company is exposed to macroeconomic vulnerabilities such as fuel price volatility, supply chain disruptions, and regulatory changes regarding emissions and cross-border logistics, which are not immediately visible on the balance sheet.

Positive Indicators: * Sustained Equity Growth: Net assets have grown consistently over the available 10-year tracking period, rising from £286k in 2016 to £1.27m in 2024. This indicates a highly profitable and sustainable operational model. * Strong Cash Generation: The company holds £873k in cash, which has more than recovered from a dip in 2022 (£452k) and represents a significant buffer against current liabilities. The current ratio stands at approximately 2.9x, indicating excellent short-term liquidity. * Regulatory and Filing Compliance: The company has a clean filing record with no overdue accounts or confirmation statements. The accounts are filed under the small companies' regime and comply with FRS 102, showing disciplined administrative governance.

Due Diligence Notes: * Composition of Debtors: An investor should request a breakdown of the £644k in "Other debtors" to ascertain the nature of these balances, their recoverability, and whether they represent cash diverted to related parties or directors. * Profitability Margins: Because the company files under the small companies' regime, the Profit & Loss account is omitted. Analyzing the revenue figures and gross/net margins would be essential to understand the drivers behind the consistent P&L reserve accumulation. * Corporation Tax Trajectory: The Corporation Tax liability has increased from £151k in 2023 to £172k in 2024. It would be prudent to verify how taxable profits are trending in the context of recent corporate tax rate changes and capital allowance adjustments. * Succession Planning: Given the tight control by the two directors, inquiries should be made regarding long-term succession planning and whether any key-person insurance is in place.