Company Number: 13499834

Analysis Date: 2025-07-20 14:49 UTC

1. Credit Opinion: CONDITIONAL APPROVAL
   ALP&ALP CONSULTANCY LTD is a young micro-entity with recent financial improvement but a limited operating history since incorporation in 2021. The company has turned around from negative net assets of approximately £9,000 in 2024 to positive net assets of £29,570 in 2025, reflecting a material improvement in financial position. However, the scale is small, and the company has no audited accounts or profit and loss details publicly available, limiting visibility on profitability and cash generation. Given the limited trading history and modest asset base, credit approval should be conditional on obtaining updated management accounts and confirmation of ongoing trading viability.

2. Financial Strength:
   The balance sheet shows a significant positive swing from net liabilities to net assets over the latest year. Current assets increased substantially to £27,278 (from £107), while current liabilities remained low at £2,292. The company has no fixed assets disclosed and is reliant largely on current assets for liquidity. Shareholders' funds are modest but positive at £29,570 as of June 2025. The absence of long-term debt and low liabilities indicate low financial leverage, which supports creditworthiness. However, prior years’ negative equity and volatility warrant caution.

3. Cash Flow Assessment:
   Net current assets improved to £29,570, indicating positive working capital, an essential factor for meeting short-term obligations. The increase in current assets suggests improved cash or receivable balances, but without a profit and loss account or cash flow statement, it's unclear whether operating cash flow supports ongoing liquidity. The company’s exemption from audit and micro-entity status limit statutory disclosure of detailed cash flow information, so monitoring actual cash generation and debtor collection will be critical.

4. Monitoring Points:

• Verify ongoing trading activity and obtain interim management accounts to assess profitability and cash flow.
• Monitor debtor aging and cash conversion cycle to ensure liquidity remains positive.
• Watch for any increase in liabilities or delayed payments to suppliers.
• Confirm no adverse director conduct or legal issues arise, given the company’s recent name changes and management structure.
• Review future filings promptly to detect any deterioration in net assets or liquidity.