ALLIUX CONTRACTS LIMITED
Executive Summary
ALLIUX CONTRACTS LIMITED demonstrates a stable micro-entity balance sheet with positive net assets and working capital, supporting its ability to service short-term obligations. The company’s liquidity has declined compared to the prior year but remains adequate given low liabilities and operating scale. Approval of credit is recommended with moderate limits and ongoing monitoring of financial performance due to limited trading history and incomplete profitability data.
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This analysis is opinion only and should not be interpreted as financial advice.
ALLIUX CONTRACTS LIMITED - Analysis Report
Credit Opinion: APPROVE (with caution) ALLIUX CONTRACTS LIMITED is a micro-entity operating in the construction sector with a short trading history since incorporation in May 2022. The company shows a positive net asset position and working capital surplus, indicating ability to meet short-term obligations. However, the recent reduction in current assets and net assets from previous years warrants monitoring. The absence of an income statement limits detailed profitability assessment, so credit exposure should be moderate and contingent on ongoing financial updates.
Financial Strength: The company’s balance sheet at 31 May 2024 reports net assets of £6,708 and shareholders’ funds at the same amount, reflecting a small but positive equity base. Fixed assets have increased slightly to £1,211, showing some investment in tangible resources. Current assets have decreased to £6,024 from £14,807 a year earlier, but current liabilities have decreased more significantly to £527, resulting in a solid net current asset position of £5,497. The balance sheet remains solvent with total assets exceeding liabilities.
Cash Flow Assessment: Current assets primarily represent cash or receivables, but the sharp decline from prior year suggests a reduction in liquidity or collection of receivables. Current liabilities are minimal, implying low short-term debt pressure. The net current asset position indicates adequate working capital to cover immediate liabilities. Given the micro-entity status and one employee, operating cash requirements are likely low, but absence of detailed cash flow statements limits full liquidity analysis.
Monitoring Points:
- Monitor subsequent annual accounts when filed to evaluate trends in profitability and cash flow.
- Watch for any increase in current liabilities or erosion of working capital.
- Assess any changes in fixed asset investments that may affect liquidity.
- Keep track of company’s contract pipeline and sector conditions affecting construction activity.
- Confirm timely filing of statutory returns continues to ensure compliance and transparency.
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