ALTIUS GROUP LIMITED

Risk Rating: LOW
Justification: The company maintains a very strong solvency position with net assets of £2.84m, zero long-term debt, and cash of £2.73m that comfortably exceeds total current liabilities of £1.40m. Profitability is robust, all filings are current, and there are no overdue returns or director disqualification records.

Key Concerns

1. Aggressive Dividend Policy – Dividends of £3.52m consumed 98% of the 2024 profit (£3.59m), leaving retained earnings growth of only £66k. While not an immediate risk, this pattern limits organic capital accumulation and could pressure equity if earnings dip.
2. High Ownership Concentration – Paul James Miller and Altius Group Holdings Limited (where Miller likely holds significant control) together own more than 75% of shares and voting rights. Minority investor protections are minimal, and key‑person dependence is elevated.
3. Cyclical Revenue Exposure – As a business broker (SIC 82990), revenue is tied to M&A activity levels. The strong 2024 profit may partly reflect peak market conditions; a downturn could stress cash generation, though the large cash buffer provides a near‑term cushion.

Positive Indicators

• Outstanding Liquidity – Cash (£2.73m) covers current liabilities 1.9x, and the current ratio stands at 2.37. No bank debt or overdrafts appear on the balance sheet.
• Consistent Profitability and Net Asset Growth – Net assets have risen steadily from £2.67m (2021) to £2.84m (2024), with 2024 profit of £3.59m nearly double the 2023 profit of £1.86m.
• No Filing or Compliance Issues – Accounts and confirmation statements are up to date, audit exemption is properly utilised, and no overdue filings or enforcement actions are noted.

Due Diligence Notes

• Obtain a breakdown of current liabilities – determine how much relates to trade creditors, tax, accruals, and any contingent earn‑out obligations from acquisitions.
• Understand the relationship between Altius Group Holdings Limited and Altius Group Limited – review the holding company’s accounts for inter‑company transactions and potential cash repatriation risks.
• Request management’s revenue pipeline and forward guidance to gauge sensitivity to a slowdown in UK M&A activity. Confirm contractual terms and client concentration.
• Review the share option scheme details – the £15k share option reserve suggests an equity incentive plan; assess potential dilution and vesting conditions.
• Confirm there are no outstanding legal claims or regulatory probes given the firm’s role as an M&A adviser.