ALKALIZE ME LTD

Risk Rating: MEDIUM
The company shows no immediate solvency threat (minimal long-term debt and zero current liabilities), but a sustained decline in net assets and total assets over three consecutive years raises concerns about operational sustainability and profitability. The lack of recent turnover data and micro-entity filing status limit transparency.

Key Concerns

1. Declining Net Asset Base
   Net assets have fallen from £63,442 in 2022 to £45,277 in 2025 – a 29% reduction. This indicates either persistent trading losses or significant dividend/distribution outflows, eroding shareholder value.

2. Shrinking Total Assets & Current Assets
   Total assets dropped from £78,442 (2022) to £48,180 (2025), with current assets falling from £26,470 (2024) to £17,508 (2025). This suggests the company is liquidating or not reinvesting, which may signal a contracting business.

3. Absence of Recent Turnover Data
   Turnover was last disclosed for the year ending November 2022 (£94,114). As a micro-entity, the company is not required to publish a profit and loss account, but the lack of any revenue or gross profit information in later years makes it impossible to assess current trading performance.

Positive Indicators

• No Current Liabilities – The balance sheet shows net current assets equal to current assets, implying the company has no short-term debt or trade creditors due within one year. This is a strong liquidity indicator.
• Minimal Long-Term Debt – Creditors due after more than one year are only £2,903, down from £6,872 in 2024. The debt burden is low and declining.
• No Late Filings – Both accounts and confirmation statement are up to date, with the next deadlines comfortably in the future. Regulatory compliance appears sound.

Due Diligence Notes

• Investigate Profitability – Request management accounts or voluntary profit and loss disclosure for the years 2023–2025 to determine whether the decline in net assets is driven by trading losses or owner withdrawals.
• Assess Business Activity – The SIC code (manufacture of fruit and vegetable juice) suggests a niche market. Confirm the company is still actively trading and generating revenue, especially given the shrinking asset base.
• Review Director Remuneration & Dividends – With two directors and a majority shareholder owning >75%, examine any dividends or director loan accounts that may have contributed to the equity reduction.
• Check Asset Composition – Fixed assets are static at £30,672 over the last two years. Verify whether these are productive assets (e.g., juicing equipment) or non-operating items, and whether they are impaired.

Executive Summary