Company Number: 12792968

Analysis Date: 2025-07-20 16:39 UTC

1. Risk Rating: HIGH
   Alpha Status Group Ltd exhibits significant solvency and liquidity risks as evidenced by persistent negative net current assets and negative shareholders' funds over multiple years. The company’s liabilities consistently exceed its current assets by a material margin, indicating an inability to meet short-term obligations without external support.

2. Key Concerns:

• Negative Net Current Assets and Shareholders’ Funds: Repeated net current liabilities (~£6k) and accumulated losses (retained earnings deficit of £2,577) indicate ongoing financial distress and erosion of equity.
• Declining Cash Reserves: Cash decreased from £12,504 in 2021 to £5,701 in 2024, raising concerns about liquidity management and operational cash flow sufficiency.
• Small Scale with Limited Capital: The share capital is nominal (£1), and the company is very small with only one employee (the director), which may limit resources and scalability, possibly impacting operational sustainability.

3. Positive Indicators:

• Compliance with Filing Requirements: Accounts and confirmation statements are up to date with no overdue filings, suggesting adherence to regulatory compliance and governance requirements.
• Tangible Fixed Assets: The company holds tangible fixed assets valued at £3,595, providing some asset backing beyond current assets.
• Single Experienced Director: The company has a single director with consistent appointment since incorporation, which may indicate stable management continuity.

4. Due Diligence Notes:

• Investigate the nature and recoverability of the debtor balance (£3,526) to assess cash flow prospects.
• Review cash flow statements or management accounts if available to understand operational liquidity trends and funding sources.
• Clarify the reason for sustained losses and whether any restructuring or financing plans are in place to restore financial health.
• Examine creditor terms and any contingent liabilities or off-balance sheet obligations.
• Confirm the absence of any director disqualifications or legal proceedings that could affect governance or future operations.