ALTUS SCIENCE LIMITED
Company number 07832730 · Monitor this company
This analysis was written by an AI from the company's public filings. It may contain errors or omissions and is not financial or professional advice.
Credit Analysis: ALTUS SCIENCE LIMITED
1. Credit Opinion: APPROVE
Rationale: Altus Science Limited presents an exceptionally strong credit profile. The company demonstrates consistent and impressive growth in net assets (from £298k in 2015 to £2.75M in 2024), maintains a near-zero leverage position with £2.05M in cash reserves, and generates sufficient retained earnings to self-fund operations and expansion. The business operates in a specialised niche (TOC certified reference materials and conductivity CRMs) with high barriers to entry, providing defensive characteristics. The only reservation is key-person dependency given husband-and-wife ownership, which warrants appropriate structuring considerations.
2. Financial Strength
Balance Sheet Summary (2024):
| Metric | 2024 | 2023 | YoY Change |
|---|---|---|---|
| Total Assets | £3,434,596 | £2,443,547 | +40.6% |
| Net Assets | £2,753,289 | £1,984,646 | +38.7% |
| Cash | £2,052,260 | £1,299,103 | +58.0% |
| Shareholders' Funds | £2,753,289 | £1,984,646 | +38.7% |
Key Observations:
- Exceptional Net Asset Growth: Net assets have grown approximately 27-fold from £98,965 (2020) to £2,753,289 (2024), demonstrating extraordinary value creation
- Virtually Debt-Free: Long-term creditors of only £4,604; the business carries negligible external debt
- Strong Asset Base: Tangible fixed assets of £710,569 with significant additions in 2024 (£288,402 in plant/machinery and leasehold improvements) indicate ongoing capacity investment
- Minimal Share Capital: £101 share capital with £2,753,188 in retained profits demonstrates all growth has been organically funded
Leverage Position: - Gearing: Effectively 0% (negligible long-term debt vs £2.75M equity) - This is a highly conservative capital structure with significant capacity to take on leverage if required
3. Cash Flow Assessment
Liquidity Analysis:
| Metric | 2024 | 2023 |
|---|---|---|
| Current Assets | £2,722,183 | £1,859,158 |
| Current Liabilities | £576,690 | £343,142 |
| Net Current Assets | £2,145,493 | £1,516,016 |
| Current Ratio | 4.72x | 5.42x |
| Quick Ratio (ex-stock) | 4.38x | 4.95x |
| Cash as % of Current Assets | 75.4% | 69.8% |
Working Capital Assessment: - Outstanding Liquidity: Current ratio of 4.72x far exceeds typical requirements; the company could pay all current liabilities nearly five times over - Cash-Dominant Balance Sheet: £2.05M in cash represents 60% of total assets and 75% of current assets - Debtors: £470,325 (up from £397,679) - appears well-managed relative to the business size - Stock: £199,598 (up from £162,376) - moderate increase consistent with business growth
Cash Generation Trajectory:
| Year | Cash | Net Assets | Cash/Net Assets |
|---|---|---|---|
| 2020 | £99,763 | £98,965 | 100.8% |
| 2021 | £260,807 | £501,576 | 52.0% |
| 2022 | £1,014,790 | £1,242,318 | 81.7% |
| 2023 | £1,299,103 | £1,984,646 | 65.5% |
| 2024 | £2,052,260 | £2,753,289 | 74.5% |
The company consistently converts profits to cash, with the cash-to-net-assets ratio stabilising around 65-80% - indicating strong earnings quality and minimal working capital drag.
4. Monitoring Points
Key Metrics to Watch:
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Retained Profit Progression: Monitor P&L reserves annually as a proxy for profitability (since full P&L is not filed). Year-on-year growth of £768,643 (2024 vs 2023) suggests strong profitability.
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Current Ratio Trend: While still exceptional, the current ratio has decreased from 5.42x to 4.72x. Monitor whether this represents normalisation or emerging pressure on working capital.
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Debtor Days: Debtors grew 18% (£397k to £470k) while the business clearly grew significantly. Request management accounts to verify debtor collection remains within acceptable parameters.
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2020 Anomaly: Net assets dropped from £713k (2019) to £99k (2020). Clarification should be sought on whether this was COVID-related, a major contract loss, or another factor. The recovery has been remarkable, but understanding the cause informs stress-testing.
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Capital Expenditure: Significant additions in 2024 (£288k in fixed assets plus leasehold improvements). Monitor whether this represents expansion capacity or maintenance requirements, and whether returns materialise.
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Employee Numbers: Grew from 20 to 23 staff. Monitor labour costs relative to revenue growth through management accounts.
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Provisions: £100,013 in provisions (down from £108,524). Understand nature - if these are warranty or environmental provisions typical of chemical manufacturing, they require ongoing scrutiny.
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Key Person Risk: The business is wholly owned and managed by Graham and Deborah Roscoe. Any credit facility should include appropriate key-person provisions and succession planning discussions.
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Dividend Policy: No dividends appear to have been taken (all profits retained). Monitor whether this policy continues, as significant dividend extraction could alter the risk profile.
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Sector Considerations: As a chemical products manufacturer (SIC 20590), monitor regulatory compliance, environmental liabilities, and any supply chain disruptions in the scientific reagents market.