Company Number: 12836446

Analysis Date: 2025-07-19 12:32 UTC

Credit Opinion:
DECLINE. ALTDRAW LTD shows a deteriorating financial position with net liabilities and negative shareholders’ funds as of the latest accounts. The company’s inability to maintain positive net current assets and net assets raises significant doubts about its capacity to meet short-term obligations and service any new credit facilities without additional external support. There is no evidence of profitability or cash flow improvement, and the business appears financially distressed.

Financial Strength:
The balance sheet reveals a micro-entity with very limited fixed assets (£2,247 in 2024) and declining current assets (£7,369 down from £9,982 in 2023). Current liabilities remain high at £10,352, leading to a negative net current asset position of -£2,983. The company has moved from positive net assets of £76 in 2023 to net liabilities of £1,876 in 2024. Shareholders’ funds are similarly negative, reflecting accumulated losses or deficits. The decline in net assets and equity signals weakening financial strength and eroded capital base.

Cash Flow Assessment:
Working capital is consistently negative, indicating liquidity constraints. The reduction in current assets suggests cash or receivables are shrinking, while liabilities remain substantial. The business employs no staff, which may limit overheads, but also indicates limited operational scale. The company's current ratio is below 1, signaling potential difficulty in meeting short-term debts without refinancing or capital injection. No data on cash flow from operations is provided, but balance sheet trends imply cash generation issues.

Monitoring Points:

• Monitor quarterly or interim financial updates for any signs of liquidity improvement or capital injection.
• Watch creditor payment patterns and any late payments or defaults.
• Track changes in current liabilities and accruals, particularly any growth that could exacerbate liquidity pressures.
• Assess director actions and any restructuring plans to restore financial stability.
• Review any new filings or disclosures for evidence of improved trading performance or external funding.