ALTILIUM LTD

Executive Summary

ALTILIUM LTD operates with a constrained financial position marked by negative working capital and reliance on related party receivables. While the company is active and compliant with filing requirements, its liquidity position is weak, warranting cautious credit exposure. Close monitoring of cash flow and debtor quality is essential to mitigate repayment risk.

ALTILIUM LTD - Analysis Report

Company Number: 13992595

Analysis Date: 2025-07-29 21:13 UTC

1. Credit Opinion: CONDITIONAL APPROVAL
   ALTILIUM LTD shows a very small operation with net current liabilities for the last two years and negative shareholders’ funds, indicating a fragile financial position. The company’s ability to meet short-term obligations is currently under pressure, with current liabilities slightly exceeding current assets. However, the company is active, has no overdue filings, and is supported by directors who appear to maintain ongoing support. Credit should be extended cautiously and ideally secured or limited to short-term, working capital facilities, with close monitoring.

2. Financial Strength:
   The balance sheet reveals negative net current assets of approximately £6,600 for both 2022 and 2023, with total shareholders’ funds also negative by around £6,600. The current assets are primarily debtors (£319k in 2023) with minimal cash (£108), which raises concerns about the ease of converting assets to cash promptly. The company depends heavily on related party balances (Altilium Metals Ltd and Altilitech Ltd), which may affect liquidity and introduce related-party risk. Fixed assets are not disclosed, suggesting minimal investment in long-term assets.

3. Cash Flow Assessment:
   Cash balances are negligible (£108 at end 2023), and net current liabilities highlight working capital constraints. The company’s debtors have increased year on year, but these are largely trade receivables from related companies, potentially limiting liquidity access. The credibility of these receivables as cash equivalents depends on the financial health and payment behaviors of those related entities. Overall, the company’s liquidity position is weak, and cash flow coverage for debt servicing is questionable without additional capital or operational cash inflows.

4. Monitoring Points:

• Debtor aging and collectability, especially related party receivables.
• Changes in current liabilities and any increases that could stress liquidity further.
• Directors’ ongoing support or capital injections to shore up working capital.
• Profitability trends once income statements become available to assess operational cash generation.
• Any changes in business model or client base that could affect receivables risk or turnover.
• Timely filing of future accounts and confirmation statements to avoid regulatory risk.