Company Number: SC682293

Analysis Date: 2025-07-29 18:27 UTC

Financial Health Assessment for ALTERNATIVE LIVING LTD

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1. Financial Health Score: D (Weak Financial Condition)

This rating reflects persistent negative net assets and working capital deficits over multiple years, indicating the company is currently under financial distress. The company’s balance sheet shows symptoms akin to a patient with chronic illness: ongoing cash flow and solvency challenges that need urgent intervention to avoid further deterioration.

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2. Key Vital Signs

Metric	2023 Value (£)	Interpretation
Fixed Assets	13,502	Stable level of long-term assets, small scale.
Current Assets	10,852	Low liquid assets; some improvement from prior years.
Current Liabilities	33,653	High short-term debts; increasing burden.
Net Current Assets (Working Capital)	-22,801	Negative, indicating short-term liquidity issues.
Total Assets Less Current Liabilities	-9,299	Negative net asset position, below zero equity.
Shareholders’ Funds (Equity)	-9,299	Negative equity, indicating accumulated losses.
Employees	0	No staff, suggesting minimal operating scale or outsourcing.

• Working Capital Deficit (Negative Net Current Assets): The company’s current liabilities exceed current assets by £22,801, a troubling symptom of liquidity stress that suggests difficulty meeting short-term obligations.
• Negative Shareholders’ Funds: At -£9,299, the company’s liabilities exceed its assets, indicating insolvency on a balance sheet basis.
• No Employees: While this limits payroll expenses, it may also suggest limited operational capacity or reliance on the director only.

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3. Diagnosis

ALTERNATIVE LIVING LTD is displaying chronic financial distress symptoms. Over the last four years, the company has consistently reported negative net assets and a negative working capital position. This indicates ongoing losses or insufficient capital injections to cover liabilities.

The company’s balance sheet is akin to a patient with a weakened immune system: it lacks the financial reserves and liquidity to withstand shocks or invest in growth. The current liabilities have increased significantly from £23,908 in 2022 to £33,653 in 2023, while current assets improved modestly but remain insufficient to cover debts.

Given the company is a micro-entity in the book publishing sector with no employees, it may be relying heavily on the director’s personal involvement or external contractors. The small scale and limited resources restrict financial flexibility.

Although the company is not in liquidation or administration and filings are current, the persistent negative equity and liquidity shortfall are red flags. Without intervention, the company risks insolvency or creditor enforcement actions.

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4. Recommendations

To improve the financial health and avoid worsening symptoms, the company should consider the following steps:

• Capital Injection: The director or investors could provide fresh equity or shareholder loans to restore positive net assets and strengthen the balance sheet “immune system.”
• Debt Restructuring: Negotiate with creditors to extend payment terms or reduce liabilities, improving short-term liquidity.
• Cash Flow Management: Implement strict cash flow controls to prioritize essential payments and conserve cash (“healthy cash flow”).
• Operational Review: Assess business model viability, considering ways to increase revenue or reduce costs, possibly by diversifying publishing activities or digital offerings.
• Professional Advice: Engage with insolvency practitioners or financial advisors early to explore restructuring options before symptoms worsen.
• Monitoring: Maintain timely filings and financial monitoring to detect any new distress signals quickly.

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