AP ALPHADECK LTD

Executive Summary

AP ALPHADECK LTD demonstrates significant financial deterioration over recent years with steep declines in current assets and shareholders’ funds, raising solvency and liquidity concerns. While compliance filings are current and governance appears stable, the lack of operational staff and diminished asset base suggest operational challenges. Further investigation into the company’s financial restructuring and business model is recommended before considering investment.

AP ALPHADECK LTD - Analysis Report

Company Number: 12801118

Analysis Date: 2025-07-20 18:08 UTC

1. Risk Rating: HIGH
   Justification: The company exhibits a significant and rapid decline in current assets from £68,997 in 2020 to just £3,402 in 2024, accompanied by the complete elimination of current liabilities as of 2024. The drastic depletion of liquid resources and shrinking shareholders' funds suggest potential solvency and liquidity issues, raising concerns about the company’s ability to meet obligations and continue operations sustainably.

2. Key Concerns:

• Severe Decline in Current Assets: A drop from nearly £69k in 2020 to £3.4k in 2024 indicates potential cash flow problems or asset disposals not supported by corresponding liability reductions.
• Absence of Current Liabilities in Latest Year: While zero current liabilities may seem positive, the sharp removal of liabilities alongside depleted assets may signal unusual balance sheet restructuring, potentially masking underlying financial distress.
• No Employees and Limited Operational Data: The company reports zero employees over multiple years, which may question operational sustainability and revenue generation capacity given the business support SIC code.

3. Positive Indicators:

• Compliance with Filing Obligations: Accounts and confirmation statements are up to date with no overdue filings, reflecting good regulatory compliance and governance practices.
• Consistent Director Presence: A single director has been continuously appointed since incorporation, suggesting stable leadership.
• No Audit Exemption Use Beyond Micro-Entity Provisions: Accounts prepared under micro-entity provisions reduce complexity but confirm adherence to legal accounting standards.

4. Due Diligence Notes:

• Investigate the reason behind the substantial reduction in current assets and elimination of current liabilities in the latest financial year, including any asset disposals, debt repayments, or capital injections.
• Clarify the company’s revenue generation model and business activity given zero employees and the SIC code indicating business support services.
• Confirm whether there are any off-balance-sheet liabilities or contingent obligations that may not be evident from the accounts.
• Review director’s report or any additional disclosures for explanations regarding financial trends and operational strategy.