ALPHA TECHNOLOGY SYSTEMS LIMITED

1. Risk Rating: LOW

Based on the available balance sheet data, the company presents a low solvency risk. Net assets stand at £633,691 at 31 August 2025, supported by cash reserves of £477,182. Current assets exceed current liabilities by approximately 2.9 to 1, and long-term borrowings are modest relative to shareholders’ funds. There are no overdue statutory filings, and the company has been active for over 25 years.

2. Key Concerns

• Limited profitability visibility: The accounts are filed as filleted accounts under the small companies regime, and the profit and loss account has not been delivered to the Registrar. Public filings therefore do not disclose turnover, gross margin, or operating profit, so it is not possible to verify whether balance sheet strength arises from sustainable trading or other sources.
• Concentration of control: The company has a single director, and the PSC register shows one individual holds more than 75% of shares. This creates key-person risk and means there is no visible independent board oversight or challenge function evident from public records.
• Working capital composition: Current liabilities include £78,142 of taxation and social security obligations and £41,110 of bank loans and overdrafts due within one year. Against debtors of £76,921, the timing of cash collections and tax settlements should be verified to ensure liquidity remains adequate through the operating cycle.

3. Positive Indicators

• Net assets have grown consistently over the decade, from £71,419 at 31 August 2016 to £633,691 at 31 August 2025.
• Cash at bank of £477,182 covers creditors due within one year (£194,313) approximately 2.5 times, indicating strong short-term liquidity.
• Gearing is low: long-term creditors are £36,523 and provisions are £12,360, against net assets of £633,691.
• Regulatory filings are current; neither the accounts nor the confirmation statement are overdue.

4. Due Diligence Notes

• Request full statutory accounts, including the profit and loss account, to assess revenue trends, margins, and the source of retained profits.
• Obtain an aged debtor analysis for the £76,921 debtor balance and details of any bad debt provisions.
• Clarify the nature, valuation, and liquidity of the £133,108 investment balance, including whether it comprises interests in subsidiaries or associates.
• Review the terms and repayment schedule of the £36,523 bank loans due after more than one year and the £41,110 short-term bank borrowings.
• Investigate related-party balances and transactions, given the single-director and more-than-75% PSC structure, including amounts included in other debtors and other creditors.