CREDALGO LTD

Executive Summary

Credalgo Ltd shows moderate solvency supported by positive shareholders’ funds but exhibits liquidity concerns due to net current liabilities. The company operates on a very small scale with limited asset base and workforce, which may impact operational stability. Up-to-date filings and stable directorship mitigate regulatory risks, but further analysis of profitability and asset reductions is advised for a comprehensive risk assessment.

CREDALGO LTD - Analysis Report

Company Number: SC683184

Analysis Date: 2025-07-29 18:47 UTC

1. Risk Rating: MEDIUM
   Justification: Credalgo Ltd is a micro-entity with limited financial data but shows some signs of solvency strain due to negative working capital. However, it maintains positive net assets and shareholder funds, indicating some cushion. The company is still active without overdue filings, which reduces compliance concerns.

2. Key Concerns:

   • Liquidity Risk: The company has current liabilities exceeding current assets (£2,722 vs. £1,210 in 2023), resulting in net current liabilities of £1,512, which suggests potential short-term liquidity difficulties.
   • Declining Fixed Assets and Current Assets: Fixed assets have decreased from £24,500 in 2020 to £7,838 in 2023, and current assets have also declined significantly, which may indicate asset disposals or reduced investment in operational capacity.
   • Limited Scale and Revenues: As a micro-entity with only one employee and minimal share capital (£100), the company likely operates at a small scale which may limit financial flexibility and resilience to market fluctuations.

3. Positive Indicators:

   • Positive Shareholders’ Funds: Despite liquidity pressures, shareholders’ funds have increased from £5,464 in 2022 to £6,326 in 2023, indicating retained earnings or equity injections supporting solvency.
   • Compliance with Filings: The company is up to date with both accounts and confirmation statement filings, reflecting good regulatory compliance and governance.
   • Stable Directorship: Single director (Mr Grant Alexander Fraser) has been in place since incorporation with no public record of disqualification or compliance issues, suggesting stable leadership.

4. Due Diligence Notes:

   • Review the company’s profit and loss information, which was not included in the accounts, to assess profitability and operational cash flows.
   • Investigate the reasons behind the significant reduction in fixed and current assets to understand whether these reflect strategic asset sales, write-downs, or operational decline.
   • Confirm the company’s revenue streams and client base stability given the small size and limited employee count.
   • Assess the adequacy of working capital management and whether the company relies on external short-term financing to meet obligations.
   • Verify any off-balance-sheet liabilities or contingent risks not disclosed in micro-entity accounts.