ALPS CONSULTING LTD

Executive Summary

Alps Consulting Ltd demonstrates significant financial stress with negative net assets and worsening liquidity position over its first two years of trading. The company’s reliance on director loans and lack of employees raises concerns regarding operational sustainability and cash flow. Although filings are current and governance appears transparent, the financial data warrants careful scrutiny of the company’s business model, cash management, and plans to restore solvency.

ALPS CONSULTING LTD - Analysis Report

Company Number: SC739043

Analysis Date: 2025-07-29 20:04 UTC

1. Risk Rating: HIGH
   The company exhibits significant solvency and liquidity concerns with negative net assets and net current assets worsening over the last two years. The absence of employees and director loans increasing materially also raise operational and financial sustainability questions.

2. Key Concerns:

• Negative net assets of £16,499 and worsening net current liabilities indicate the company is insolvent on a balance sheet basis.
• Deteriorating liquidity with cash reduced from £14,934 in 2023 to £7,248 in 2024, alongside increasing current liabilities (£29,755) including director loans (£22,357).
• No employees and reliance on director loans signal limited operational capacity and potential cash flow dependency on directors rather than trading income.

3. Positive Indicators:

• The company is up to date with statutory filings (accounts and confirmation statement) with no overdue documents or penalties.
• The company is relatively new (incorporated in 2022), which may indicate early stage development and potential for restructuring or capital injection.
• Shareholders and directors are identified with clear significant control and governance transparency.

4. Due Diligence Notes:

• Investigate the nature and terms of director loans (£22,357) and the company’s ability to repay or convert these into equity.
• Analyze the company’s trading activities and revenue generation since inception to assess operational viability given zero employees reported.
• Review cash flow forecasts and working capital management plans to understand how the company intends to address the negative net current assets and improve liquidity.
• Confirm whether there are any contingent liabilities or off-balance sheet obligations not disclosed in the accounts.
• Assess the strategic plan of the directors for turnaround or capital restructuring given ongoing losses and negative equity.