ALUDUM LTD

Executive Summary

Aludum Ltd is a micro-entity with a sharply declining financial position marked by minimal net assets and liquidity as of March 2024. While the company remains compliant with statutory filings and governance appears stable, the significant erosion of equity and cash resources present a high solvency and operational risk. Further investigation into the company’s financial performance and business viability is recommended before considering investment.

ALUDUM LTD - Analysis Report

Company Number: 13261359

Analysis Date: 2025-07-29 15:14 UTC

1. Risk Rating: HIGH
   Justification: The company exhibits a significant and consistent decline in net assets and current assets over the past three years, culminating in a very low level of net assets (£439) as of 31 March 2024. The extremely limited working capital and absence of fixed assets raise concerns about its ability to sustain operations and meet financial obligations.

2. Key Concerns:

• Deteriorating Financial Position: Net assets decreased from £2,839 in 2021 to £439 in 2024, indicating erosion of equity and potential operational losses.
• Minimal Liquidity: Current assets have shrunk drastically to just £439 with no current liabilities recorded, suggesting very limited cash or receivables to fund ongoing expenses or unexpected costs.
• Lack of Operational Scale and Assets: The company has no fixed assets reported in the latest year and only a single employee, which may imply limited operational capacity and scalability.

3. Positive Indicators:

• Compliance: The company is up to date with its filing obligations, including accounts and confirmation statements, with no overdue filings noted.
• Stable Management: Directors have been in position since incorporation with no reported disqualifications or governance issues.
• Micro-Entity Status: The company benefits from simplified reporting requirements, which may reduce administrative burden and costs.

4. Due Diligence Notes:

• Investigate the reasons behind the sharp decline in current assets and net assets, including review of profit and loss performance and any extraordinary expenses or losses.
• Confirm the nature of current assets (e.g., cash, receivables) and verify if the company maintains sufficient cash flow to meet operational and creditor demands.
• Assess the business model and sustainability given the minimal staffing and asset base, including client contracts, revenue streams, and future outlook.
• Review any contingent liabilities or off-balance-sheet obligations not reflected in the financial statements.
• Consider obtaining management accounts or cash flow forecasts for a more current view of financial health.