ALPHA NAME LTD

Executive Summary

Alpha Name Ltd is a very small private limited company with positive net assets and working capital but showing a decline in equity and liquidity over recent years. The company demonstrates adequate short-term financial strength to meet obligations but limited financial transparency due to abridged accounts. Conditional credit approval is recommended, subject to ongoing monitoring of cash flows, debtor management, and director oversight to safeguard repayment capability.

ALPHA NAME LTD - Analysis Report

Company Number: 12590662

Analysis Date: 2025-07-20 16:15 UTC

1. Credit Opinion: CONDITIONAL APPROVAL
   Alpha Name Ltd shows a stable but declining net asset base and working capital position over the last three years, suggesting some erosion in financial strength. The company is very small, with minimal share capital (£1) and limited fixed assets. However, it maintains positive net current assets and shareholder funds, indicating some buffer to meet short-term liabilities. The lack of audit and abridged reporting limits visibility into profitability and cash flows. Approval is recommended subject to monitoring of cash flow and debtor collections, and confirmation that recent director changes have not impacted operational control or financial stewardship.

2. Financial Strength
   The latest financials (year ending May 2024) show:

• Shareholders' funds decreased from £7,880 (2023) to £5,927 (2024), a reduction of 25%, indicating declining retained earnings or losses.
• Fixed assets have halved from £2,735 to £1,229, possibly due to disposals or depreciation, reducing collateral value.
• Current assets declined from £8,854 to £5,700, largely due to a drop in cash and debtors.
• Current liabilities decreased significantly from £3,709 to £1,002, improving short-term solvency.
  Overall, the company remains solvent with positive net assets but the downward trend in equity and asset base warrants caution.

3. Cash Flow Assessment

• Cash on hand halved from £4,551 to £2,324 over the year, which may indicate tighter liquidity.
• Debtors reduced from £4,303 to £3,376, suggesting some improvement in collections or lower sales.
• Net current assets remain positive at £4,698, indicating adequate working capital to cover current liabilities.
• With one employee and limited fixed assets, operating costs are likely low, but the absence of full profit and loss data restricts detailed cash flow analysis.
  Liquidity appears sufficient at present, but the downward cash trend should be monitored closely.

4. Monitoring Points

• Continued decline in shareholder funds and net assets: Watch for signs of sustained losses or erosion of capital.
• Cash and debtor levels: Monitor closely to ensure liquidity remains adequate and debtor collection remains efficient.
• Impact of director change: New director appointed in Feb 2025; verify management stability and strategic direction.
• Filing compliance: All accounts and confirmation statements currently up to date; maintain timely filings.
• Business activity and revenue trends: As SIC code 96090 indicates unspecified service activities, clarity on revenue sources and profitability is important to confirm ongoing viability.