Company Number: 12847925

Analysis Date: 2025-07-20 12:06 UTC

1. Credit Opinion: DECLINE
   Alpha Nu Consulting Limited exhibits a significant deterioration in financial condition over recent years. The company’s net assets have plummeted from £125k in FY2020 to a mere £1.9k in FY2024, indicating severe erosion of equity and capital base. The drastic reduction in net current assets—from £123k positive in 2020 to just £857 in 2024—raises serious concerns about liquidity and ability to service short-term obligations. The company operates as a micro entity with minimal share capital (£20), suggesting limited financial buffer. Without positive cash flow or capital injection evidence, the credit risk is elevated, warranting a decline for new credit facilities.

2. Financial Strength:
   Balance sheet strength has materially weakened. Fixed assets are negligible (£1k) and have slightly decreased. Current assets have fallen sharply by over 50% from £93k in 2023 to £43k in 2024, while current liabilities remain high (£42k). The resulting net current assets of only £857 essentially reflects working capital tightness. Shareholders’ funds have dropped from £46.6k in 2023 to £1.9k in 2024, indicating accumulated losses or withdrawals and eroding equity cushion. No retained earnings or profit figures are disclosed, but the balance sheet trend shows declining financial resilience.

3. Cash Flow Assessment:
   The company’s liquidity position is marginal. Current liabilities nearly match current assets, leaving minimal headroom for operating cash requirements or debt servicing. The decline in current assets and net current assets signals potential cash flow challenges. Given the absence of audit or profit and loss disclosure, it is unclear whether operating cash flow is positive. The small scale (2 employees) and micro classification limit operational complexity but also reflect limited cash generation capacity. Overall, working capital is tight and could impair timely payment of creditors or loans.

4. Monitoring Points:

• Quarterly updates on cash balances and short-term liabilities to track liquidity trends.
• Confirmation of any capital injection or shareholder funding plans to bolster equity.
• Operating profit or loss trends once full accounts including P&L are available.
• Director conduct and related party transactions, given close family director appointments, to assess governance and financial stewardship.
• Any overdue filings or changes in company status that might indicate distress.