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.