ALTIBA LTD

Executive Summary

ALTIBA LTD shows a solid financial foundation with strong liquidity and solvency, typical of a well-managed micro-entity. However, a decrease in fixed assets and shareholders' funds signals a need for closer monitoring of asset management and profitability. With targeted actions to review assets and strengthen governance, the company is well-positioned to maintain financial health and support future growth.

ALTIBA LTD - Analysis Report

Company Number: 13122024

Analysis Date: 2025-07-20 14:10 UTC

Financial Health Assessment of ALTIBA LTD

---

1. Financial Health Score: B

Explanation:
ALTIBA LTD demonstrates solid financial stability with a strong equity base relative to its liabilities and a consistent working capital position. While the company shows a modest decline in total net assets and fixed assets during the latest financial year, its liquidity and solvency remain healthy. The micro-entity size limits detailed disclosures, but from available data, the company appears financially sound, though there are early "symptoms" that suggest a need to monitor fixed asset utilization and asset turnover.

---

2. Key Vital Signs: Critical Metrics & Interpretation

Metric	2024 Value (£)	Interpretation
Fixed Assets	48,542	Declining by ~20% from £60,936 in 2023; may indicate asset disposals or depreciation.
Current Assets	56,383	Decreased by ~16% from previous year; cash and receivables remain sufficient to cover liabilities.
Current Liabilities	1,328	Low short-term debts, reduced from £2,209 in 2023, indicating good short-term creditor management.
Net Current Assets	55,055	Strong positive working capital, indicating healthy liquidity ("healthy pulse" of daily operations).
Shareholders' Funds	103,597	Equity decreased from £126,051 in 2023, suggesting retained earnings have fallen but still robust.
Employee Count	2	Stable staffing level, consistent with micro-entity classification.
Share Capital	£2	Nominal capital; most equity is retained earnings or reserves.

Additional Notes:

• The company benefits from exemptions from audit and detailed profit and loss disclosures as a micro-entity, limiting insight into profitability and cash flows.
• Directors are also significant shareholders with balanced control, likely enabling aligned strategic decisions.

---

3. Diagnosis: What the Financial Data Reveals About Business Health

• Liquidity: ALTIBA LTD has a "healthy cash flow" symptom, evidenced by strong net current assets and low current liabilities. This means the company should comfortably meet short-term obligations.
• Solvency: The net assets are positive and substantial relative to liabilities, indicating the company is solvent with a "strong heart" of equity backing.
• Asset Management: A reduction in fixed assets by nearly 20% suggests the company may be either depreciating assets faster than replacement or has sold some assets. This "symptom" could indicate a strategic downsizing or aging asset base needing reinvestment.
• Profitability: Lack of profit and loss detail means we cannot conclusively diagnose profit margins or operational efficiency. However, the decline in shareholders’ funds may suggest lower retained profits or a loss during the year.
• Size & Complexity: As a micro-entity with just two employees, ALTIBA LTD operates on a small scale, which typically allows nimble management but also exposes it to concentration risk.
• Governance & Control: Directors doubling as significant shareholders with rights to appoint/remove directors indicates centralized control, which can be good for quick decisions but requires vigilance for governance balance.

---

4. Recommendations: Specific Actions to Improve Financial Wellness

1. Asset Review and Investment:
   Conduct a thorough review of fixed assets. If the decline reflects asset disposals, evaluate if replacement or upgrading is required to support growth or maintain operational capacity.

2. Profitability Monitoring:
   Although profit and loss details are unavailable, it is critical to track profitability trends closely. Consider preparing internal management accounts to identify profit drivers and cost-saving opportunities.

3. Cash Flow Management:
   Maintain the strong working capital position by managing receivables and payables efficiently. Avoid overextension of credit to customers and ensure suppliers are paid on time to sustain good relationships.

4. Governance Best Practices:
   Given the small management team and concentrated ownership, establish clear roles and periodic independent reviews to mitigate risks associated with single-point control.

5. Growth and Diversification Planning:
   Explore opportunities to expand the business or diversify services within the professional, scientific, and technical activities sector to enhance revenue streams and resilience.

6. Future Financial Reporting:
   Although exempt from audit, consider voluntarily preparing more detailed financial statements to aid stakeholders' understanding and support potential financing or partnership discussions.

---