Company Number: 12623688

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

1. Risk Rating: MEDIUM

Justification: Alpha Phoenix Publishing Ltd shows a decline in net assets and working capital in the latest financial year, which may signal emerging liquidity or solvency pressures. However, it remains solvent with positive net assets and current assets exceeding current liabilities. The company is active, compliant with filing deadlines, and has no indications of regulatory or governance issues.

2. Key Concerns:

• Sharp decrease in net assets from £24,056 (2023) to £5,254 (2024), indicating potential financial stress or losses that need explanation.
• Significant increase in current liabilities (from £29,686 to £39,433) coupled with a reduction in current assets, reducing net current assets from £24,056 to £3,578, which tightens liquidity.
• Concentration of directors who both reside at the same address and share nationality, which may pose operational risk if key personnel issues arise, although no disqualifications or compliance issues are noted.

3. Positive Indicators:

• The company remains active and has filed accounts and confirmation statements on time with no overdue filings.
• Maintains positive net working capital and net assets, suggesting it can currently meet short-term obligations.
• Cash balances remain substantial at £42,547, indicating available liquidity for near-term operational needs.
• Small number of employees (2) consistent with a micro/small entity profile, which may allow nimble operational control and lower fixed costs.

4. Due Diligence Notes:

• Investigate reasons behind the steep decline in net assets and working capital during the latest financial year, including profitability and any extraordinary expenses or write-downs.
• Review the nature and timing of current liabilities to assess if payable amounts are manageable or if delayed payments are masking cash flow issues.
• Confirm the stability and experience of current directors and management, given the concentrated control and potential operational dependency.
• Examine turnover and profitability trends, which are not disclosed here, to assess operational sustainability.
• Clarify whether any related party transactions exist, given the director loan accounts and shared director addresses.