Company Number: 13340368

Analysis Date: 2025-07-29 14:53 UTC

1. Credit Opinion: DECLINE
   Allstar Group Limited shows persistent net current liabilities of approximately £151,000 and negligible net assets (£31 in 2024), indicating weak balance sheet strength and negative working capital. The company’s liabilities are primarily amounts owed to group undertakings, suggesting reliance on related-party funding without independent cash flow generation. There is no evidence of profitability or cash inflows from operations as the profit and loss account was not filed, and the company’s principal activity is holding investments rather than trading. This structure limits the company’s ability to service debt independently or sustain external credit. Without stronger cash flows or equity backing, extending credit poses a high risk of default.

2. Financial Strength:
   The balance sheet is dominated by a fixed asset investment of £151,176 offset by current liabilities of £151,085 and minor long-term creditors of £60, leaving net assets at a minimal positive £31 in 2024 after being negative in prior years. The company has no reported current assets such as cash or receivables, reflecting poor liquidity. Shareholders’ funds are effectively zero, showing no retained earnings or capital cushion. The company is essentially a holding entity funded through related-party loans rather than independent capital or operational profits.

3. Cash Flow Assessment:
   No cash or current assets are disclosed, and the company’s current liabilities equal the amounts owed to group undertakings, indicating an absence of liquid resources to cover short-term obligations. The negative net current assets position highlights working capital inadequacy. The company’s cash flows likely depend entirely on intra-group financial support. There is no indication of operational cash generation or external financing capacity.

4. Monitoring Points:

• Changes in net current assets and liquidity position.
• Any disclosures of operating income or cash flow generation in future filings.
• Movements in amounts owed to group undertakings and whether these convert to equity or get repaid.
• Timely filing of full accounts including profit and loss statements to assess profitability trends.
• Any director or shareholder capital injections improving equity base.