A.L.P CARE & SUPPORT CYF

Executive Summary

A.L.P CARE & SUPPORT CYF demonstrates a micro-entity scale with adequate short-term liquidity but has recently reported negative net assets due to new long-term liabilities. While regulatory compliance and governance appear sound, the introduction of long-term creditors and declining equity warrant further investigation to fully assess financial stability and operational sustainability.

A.L.P CARE & SUPPORT CYF - Analysis Report

Company Number: 12685183

Analysis Date: 2025-07-20 16:19 UTC

1. Risk Rating: MEDIUM
   The company shows a recent deterioration in net assets resulting in negative shareholders' funds as of June 2024, which raises moderate solvency concerns. However, there are no overdue filings or indications of operational cessation, and current liabilities are mostly covered by current assets.

2. Key Concerns:

• Negative Net Assets: The balance sheet at 30 June 2024 reports net liabilities of £3,405 compared to positive net assets of £8,046 the previous year, indicating potential erosion of capital and financial stress.
• Long-Term Creditors Introduced: The presence of £13,002 in creditors due after more than one year in 2024 (absent in prior years) suggests new long-term debt or obligations that may impact future cash flows and solvency.
• Low Share Capital and Small Scale: With only £1 share capital and micro-entity status, the company has limited equity buffer and scale, which may constrain its ability to absorb financial shocks or invest for growth.

3. Positive Indicators:

• Current Assets Exceed Current Liabilities: Despite reduced net current assets (£1,767 in 2024 vs. £8,046 in 2023), the company still maintains positive working capital, suggesting short-term obligations can likely be met.
• No Filing or Compliance Issues: Accounts and confirmation statements are up to date with no overdue filings or penalties, indicating good regulatory compliance.
• Stable Director and Control Structure: The company benefits from continuity in directorship and a clear person of significant control owning majority shares, which supports governance stability.

4. Due Diligence Notes:

• Investigate the nature and terms of the new long-term creditors (£13,002) to assess repayment obligations and impact on solvency and liquidity.
• Review management accounts or cash flow statements if available to understand the cash generation capacity and short-term liquidity beyond balance sheet snapshots.
• Examine reasons behind the net asset decline in 2024, including any extraordinary losses, write-downs, or accruals affecting equity.
• Confirm whether the company’s business operations and revenue streams remain sustainable given its micro size and limited employee base (2 employees).
• Assess director conduct and any historical issues, though none are apparent from current data.