ALTERED PIXEL LIMITED

Executive Summary

Altered Pixel Limited shows a stable and improving financial position with sufficient liquidity and positive net assets, supporting its ability to meet debt obligations. The company exhibits prudent financial management and no immediate credit risks are evident. Continued monitoring of cash flow and goodwill valuation is recommended to maintain credit confidence.

ALTERED PIXEL LIMITED - Analysis Report

Company Number: 12516474

Analysis Date: 2025-07-29 18:28 UTC

1. Credit Opinion: APPROVE
   ALTERED PIXEL LIMITED demonstrates a solid financial position with positive net assets (£120,666 as of March 2024) and consistent working capital surplus. The company has maintained adequate liquidity, reflected in a healthy cash balance (£86,447) and net current assets of £62,504. There are no indications of financial distress or overdue filings. The director's interest-free loan is minimal and does not negatively impact creditworthiness. Overall, the company appears capable of servicing debt and meeting commercial obligations.

2. Financial Strength:
   The balance sheet shows steady growth in net assets from £51,373 in 2020 to £120,666 in 2024, indicating an improving equity base and retained earnings. Fixed assets are modest but stable; goodwill is amortized systematically. Current liabilities have decreased notably from £71,720 in 2020 to £38,758 in 2024, improving liquidity ratios. Deferred tax liabilities are recognized but not excessive. Share capital is nominal (£1), typical for a private limited company.

3. Cash Flow Assessment:
   Cash holdings remain strong and sufficient to cover short-term liabilities (cash £86,447 vs current liabilities £38,758). Debtors have declined, suggesting improved collection or reduced sales on credit, which supports cash flow stability. The net current asset position (~£62k) provides a comfortable buffer for operational needs. No bank overdrafts or borrowings recorded, indicating limited leverage and low financial risk.

4. Monitoring Points:

• Monitor continued cash flow generation and working capital management, especially debtor collections and creditor payment terms.
• Watch goodwill amortization and any potential impairment indicators due to its material balance (£30,750).
• Review director loan balance to ensure no unexpected increases that could affect liquidity.
• Keep track of operating performance as profit and loss details are not included; profitability trends could impact future creditworthiness.
• Ensure filings and compliance remain timely, to avoid regulatory risk.