ALPHA BIOLABORATORIES COVID-19 TESTING LIMITED

Executive Summary

ALPHA BIOLABORATORIES COVID-19 TESTING LIMITED exhibits strong liquidity and equity stability, indicating a healthy financial position with no immediate distress signals. However, reliance on related party transactions and a minimal capital base suggest areas for improvement to enhance financial resilience. Focused management of receivables, capital strengthening, and operational expansion are recommended to secure sustainable long-term growth.

ALPHA BIOLABORATORIES COVID-19 TESTING LIMITED - Analysis Report

Company Number: 12845735

Analysis Date: 2025-07-19 12:32 UTC

Financial Health Assessment Report for ALPHA BIOLABORATORIES COVID-19 TESTING LIMITED

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1. Financial Health Score: B

Explanation:
The company demonstrates stable and consistent net current assets and shareholders’ funds over multiple years, indicating a strong liquidity position and a solid equity base. However, the relatively small share capital and reliance on related party transactions present moderate risk factors that preclude the highest grade. Overall, the financial "vital signs" show a business that is financially stable but with room for strengthening capital structure and diversification of funding sources.

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2. Key Vital Signs

Metric	31 March 2024 Value	Interpretation
Debtors (Receivables)	£880,761	High receivables suggest strong sales/orders but potential risk if collection slows.
Current Liabilities	£182,483	Low current liabilities relative to assets indicate good short-term financial health.
Net Current Assets (Working Capital)	£698,278	Healthy working capital (net current assets) signals good liquidity and ability to cover short-term debts.
Shareholders' Funds (Equity)	£698,278	Positive and stable equity indicates sound capital structure and business solvency.
Share Capital	£100	Very low share capital suggests limited initial investment; reliance on retained earnings or other funding.
Related Party Balances	Debtors: £880,421; Creditors: £182,483	Significant related party balances could indicate financial interdependence, which may pose risk if not managed carefully.
Employees	NIL	No employees reported; possibly a holding or service company relying on external resources or outsourcing.

Interpretation of Vital Signs:
The company shows "healthy cash flow indicators" with strong working capital and equity. The stability of these metrics over several years ("steady vital signs") suggests no immediate financial distress. However, the high level of debtors (receivables) concentrated in related parties implies a "symptom of potential liquidity risk" if those parties delay payments. The absence of employees may indicate limited operational activity or outsourcing, which reduces fixed cost burden but could affect growth potential.

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3. Diagnosis

Overall Financial Condition:
ALPHA BIOLABORATORIES COVID-19 TESTING LIMITED is currently in a stable financial state. The company shows no signs of liquidity stress, with net current assets nearly four times the current liabilities, indicating a strong buffer to meet short-term obligations. The consistent shareholders' funds reflect retained earnings accumulation, providing a solid equity foundation.

However, the business shows a "dependency symptom" on transactions with related parties, which could pose a risk if these entities face financial difficulties or delays in settling balances. The minimal share capital and lack of employees suggest the company's operational scale may be limited or structured to minimize overhead, consistent with a specialized testing or service provider.

No audit was triggered due to the small company regime, which is common for micro or small entities, but this limits the external assurance on financial accuracy. The company is compliant with filing requirements and maintains current statutory obligations, reducing regulatory risk.

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4. Recommendations

• Diversify Receivables Base:
  Actively monitor and manage debtors, especially related party balances, to mitigate concentration risk and improve cash flow reliability. Implement or review credit control policies to minimize overdue payments.

• Strengthen Capital Base:
  Consider increasing share capital or external equity investment to bolster the funding structure and reduce reliance on related party financing, improving financial independence and resilience.

• Operational Review:
  Evaluate the business model concerning the absence of employees. If growth is planned, consider strategic hiring or partnerships to expand operational capacity and reduce dependency on external parties.

• Enhance Financial Reporting:
  Although exempt from audit, consider voluntary external review or enhanced internal controls to increase stakeholder confidence and detect financial discrepancies early.

• Risk Management:
  Develop contingency plans addressing potential related party financial difficulties, ensuring the company can maintain liquidity and operations independently.

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