Company Number: 12514997

Analysis Date: 2025-07-29 17:54 UTC

1. Risk Rating: MEDIUM

   Justification: ALME Management Ltd shows a significant imbalance between current liabilities and current assets, reflecting liquidity stress, although it maintains positive net assets due to substantial fixed assets (real estate). The company is active, compliant with filings, and has stable ownership and management, but the high level of long-term creditors and negative working capital warrant caution.

2. Key Concerns:

   • Liquidity Risk: The company’s current liabilities (£260,782) exceed current assets (£14,720) by a wide margin (net current liabilities of £64,378), indicating potential difficulties in meeting short-term obligations without refinancing or asset sales.

   • Leverage and Solvency: Long-term creditors (£260,782) remain high relative to net assets (£41,739), suggesting significant debt secured against fixed assets. While net assets are positive, the debt level could strain solvency if asset values decline or cash flow weakens.

   • Limited Financial Transparency: As a micro-entity, the company files minimal financial information and is unaudited, limiting insight into profitability, cash flows, and contingent liabilities, which increases uncertainty for investors.

3. Positive Indicators:

   • Stable Fixed Asset Base: Fixed assets remain consistent at £366,899 over recent years, reflecting tangible real estate holdings that support the company’s intrinsic value.

   • Compliance and Governance: The company is active, with no overdue filings for accounts or confirmation statements, indicating good regulatory compliance.

   • Consistent Ownership and Management: Directors and persons with significant control have been stable since incorporation, offering continuity in management and strategic direction.

4. Due Diligence Notes:

   • Investigate Debt Terms: Clarify the nature, maturity, and covenants of the long-term creditors, including whether the debt is secured against fixed assets and the company’s ability to refinance or repay.

   • Cash Flow Analysis: Obtain detailed cash flow statements or management accounts to assess operational cash flows and the company’s capacity to service debt and manage working capital deficits.

   • Asset Valuation: Confirm current market values of fixed assets (real estate) to ensure balance sheet valuations are realistic and to evaluate collateral coverage for creditors.

   • Profitability and Revenue Streams: Seek information on income generation, rental income or sales activity related to real estate holdings, as this is not available in the micro-entity filings.

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