MINDALPHA LTD

Executive Summary

MindAlpha Ltd has shown a marked improvement in its financial position in the latest fiscal year, moving from net liabilities to positive net assets and working capital. While the company currently exhibits no compliance issues and stable management, the volatility in working capital components and limited equity base suggest a medium risk profile requiring further analysis of cash flow stability and debtor quality. Investors should conduct additional due diligence on operational cash flows and customer credit risk to confirm sustainability.

MINDALPHA LTD - Analysis Report

Company Number: 12488494

Analysis Date: 2025-07-29 16:56 UTC

1. Risk Rating: MEDIUM
   MindAlpha Ltd demonstrates a recent turnaround from historical net liabilities to positive net assets and working capital as of 2024, indicating improving solvency. However, significant fluctuations in current liabilities and debtors, alongside a small shareholder base and limited fixed assets, warrant cautious monitoring.

2. Key Concerns:

• Volatile Working Capital: The company swung from negative net current assets in prior years (-£15k plus) to positive £18k in 2024, driven mainly by a large reduction in creditors. This volatility could signal unstable cash flow management or irregular payment cycles.
• High Debtor Concentration: Trade debtors dropped sharply from £37k in 2023 to £4.3k in 2024, suggesting potential collection risk or a change in revenue recognition; reliance on timely debtor payments is a liquidity concern.
• Small Equity Base and Share Capital: With only £100 share capital and a single ultimate controller holding 75-100% shares, the company may have limited equity cushion to absorb future losses or raise capital quickly.

3. Positive Indicators:

• Improved Solvency Position in 2024: Net assets rose to £19k from a negative £13.5k the prior year, and net current assets improved by over £33k, indicating better ability to meet short-term obligations.
• No Filing or Compliance Issues: Accounts and confirmation statements are filed on time, with no overdue filings or audit exemptions properly claimed under small company regime.
• Stable Management and Ownership: Directors have been in position since incorporation with no disqualifications noted, and the company is active in a defined consultancy niche (SIC 70229).

4. Due Diligence Notes:

• Investigate the reasons behind the large fluctuations in trade debtors and creditors between 2023 and 2024, including customer concentration and credit terms.
• Review cash flow statements or internal management accounts (not provided) to assess operational liquidity beyond year-end snapshots.
• Confirm the nature and sustainability of revenue streams, given the small scale of operations and limited asset base.
• Review any contingent liabilities or off-balance-sheet risks not disclosed in filleted accounts.
• Assess director and shareholder plans for future capital injection or growth strategies.