Company Number: 13130892

Analysis Date: 2025-07-19 13:05 UTC

1. Credit Opinion: APPROVE
   Alternative Alterations Ltd exhibits a positive financial trajectory with a significant increase in net current assets and net assets from 2023 to 2024, indicating improved liquidity and capital strength. The company operates within the construction sector, with stable management comprising directors experienced in building and accountancy. No adverse director conduct records or overdue filings are noted. Based on the micro-entity financials, the business demonstrates sound financial stewardship and capacity to meet short-term liabilities. Therefore, a credit facility can be approved, subject to standard monitoring.

2. Financial Strength:
   The balance sheet as of 31 January 2024 shows total net assets of £37,662, a substantial increase from £6,454 the previous year. Fixed assets slightly decreased from £5,660 to £4,717, while current assets increased markedly from £11,817 to £87,225. Current liabilities rose to £54,280 from £11,023, but net current assets improved from £794 to £32,945, reflecting stronger working capital. Shareholders’ funds mirror net assets at £37,662, indicating no external equity dilution. Overall, the company’s financial position is stable with enhanced equity and liquidity buffers.

3. Cash Flow Assessment:
   The significant rise in current assets, notably cash or equivalents, suggests improved liquidity and operational cash flow. The company maintains positive net current assets, supporting short-term debt servicing capacity. The increase in current liabilities is offset by the strong rise in current assets, maintaining a comfortable working capital position. With an average workforce growing from 1 to 3 employees, the company appears to be scaling operations prudently without excessive leverage. No overdue filings or audit issues further support liquidity reliability.

4. Monitoring Points:

• Monitor the trend in current liabilities to ensure they do not outpace current assets, which would impair liquidity.
• Track revenue growth and profitability to sustain and improve shareholders’ funds beyond the current micro-entity level.
• Review cash flow statements when available to confirm operational cash generation aligns with balance sheet improvements.
• Keep watch on sector risks in construction, including supply chain and labor costs, which may impact financial stability.
• Confirm ongoing compliance with filing deadlines and director conduct to mitigate governance risks.