Company Number: 13126748

Analysis Date: 2025-07-20 14:11 UTC

Financial Health Assessment for ALTAIR12 LTD

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1. Financial Health Score: D

Explanation:
ALTAIR12 LTD exhibits significant financial strain, reflected in negative net assets and minimal working capital. Although there is some growth in current assets, liabilities remain high relative to assets, indicating symptoms of financial distress. The company's financial "vital signs" suggest it is struggling to maintain a healthy balance sheet and equity base, warranting a below-average grade.

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2. Key Vital Signs:

Metric	2024 Value	Interpretation
Net Assets (Shareholders’ Funds)	-£25	Negative equity indicates the company owes more than it owns—an unhealthy sign akin to a patient with a deficit in vital nutrients.
Current Assets	£228,265	Healthy increase (up from £48,770 in 2023) largely due to increased debtors; shows potential for cash inflow but dependent on collection.
Cash at Bank & in Hand	£12,571	Low cash reserves, indicating limited immediate liquidity or “energy” to meet short-term needs.
Current Liabilities	£226,931	Substantial short-term debts, nearly equal to current assets, putting pressure on working capital.
Net Current Assets (Working Capital)	£1,334	Slightly positive, but marginal and fragile—like a pulse barely detectable, indicating tight liquidity.
Debtors (Trade Receivables)	£205,693	Very high relative to cash, suggesting reliance on customer payments; risk of cash flow blockage if collections delay.
Creditors (Short-term Debt)	£226,931	High immediate obligations which could strain operations if not managed.
Employees	3 (average)	Small workforce, indicative of a micro/small company scale.

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3. Diagnosis:

ALTAIR12 LTD shows signs of being in a precarious financial state. The negative net assets point to an imbalance where liabilities exceed assets, a symptom of financial distress that might stem from accumulated losses or undercapitalization. The company’s working capital is barely positive, indicating that while it can cover short-term debts, the margin is very thin—similar to a patient with a low but stable heartbeat.

The substantial increase in debtors implies that the company’s revenue or sales bookings have grown, but converting these into actual cash remains crucial. The low cash balance is a warning sign that the company may struggle to pay bills or creditors promptly without efficient credit control or additional financing.

The fact that the company is unaudited and has chosen abridged accounts suggests a smaller scale operation but also means less detailed scrutiny of financial health. The business is still active and filing on time, which is a positive sign, but the variability in director appointments and resignations in 2024 may indicate internal management changes or instability.

In summary, ALTAIR12 LTD is showing symptoms of financial strain that could worsen if cash flow from debtors is delayed or if liabilities increase. The negative equity and tight liquidity are key concerns.

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4. Recommendations:

• Improve Cash Flow Management:
  Accelerate debtor collections by tightening credit terms and following up promptly. The current high debtor balance is a liquidity risk.

• Strengthen Equity Base:
  Consider capital injection from shareholders or restructure to reduce liabilities, improving the net asset position and financial resilience.

• Monitor and Control Costs:
  With a small team and limited resources, controlling overhead costs is essential to avoid worsening losses.

• Regular Financial Review:
  Implement monthly cash flow forecasts and financial reviews to detect and address issues early—akin to regular health check-ups.

• Seek Advisory Support:
  Professional advice on restructuring debt and improving financial controls could provide strategic support to restore financial health.

• Director Stability:
  Ensure consistent leadership to provide stable governance and strategic direction, as frequent changes can destabilize operations.

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