Company Number: 12818325

Analysis Date: 2025-07-19 12:42 UTC

1. Risk Rating: LOW
   Alphastor Limited demonstrates solid financial footing with positive net current assets and shareholders’ funds, consistent compliance with filing deadlines, and no indications of insolvency or regulatory issues.

2. Key Concerns:

• Declining Debtors Balance: The trade debtors decreased significantly from £95,504 in 2023 to £60,986 in 2024, which may indicate reduced sales or collection issues worth investigating.
• High Taxation and Social Security Creditors: Taxation and social security liabilities increased to £68,731 in 2024 from £51,819 in 2023, representing a material component of current liabilities that should be monitored for timely settlement.
• Director Resignation Impact: One of two directors, Mr. Owen Davies, resigned in August 2023; the impact on governance and operational stability should be reviewed, especially considering Mr. Brendan Oldfield’s sole directorship currently.

3. Positive Indicators:

• Strong Liquidity Position: Cash balances nearly doubled from £54,817 in 2023 to £105,589 in 2024, supporting short-term liquidity and operational needs.
• Positive Net Current Assets and Equity Growth: Net current assets increased to £86,183 in 2024 from £79,075 in 2023, and shareholders’ funds increased to £87,114, indicating retained profitability and capital preservation.
• Timely Compliance: The company is up to date with annual accounts and confirmation statement filings, indicating sound regulatory compliance.

4. Due Diligence Notes:

• Investigate the reason behind the significant reduction in debtors and whether it reflects changes in business volume, credit policy, or collection efficiency.
• Review the composition and due dates of taxation and social security liabilities to assess any risks of payment delays or penalties.
• Evaluate the governance structure post director resignation, including any potential risks of concentration of control with a single director and effects on operational decision-making.
• Confirm the nature of business activities under SIC codes 82990 (Other business support service activities) and 43290 (Other construction installation) to understand revenue streams and sector risks.
• Consider the impact of dividend payments to directors (£68,000 in 2024) on retained earnings and cash flow.