ALTOBO LTD

Financial Health Score: F (Critical Condition)

This grade reflects a severe state of financial distress. The company is technically insolvent, meaning its liabilities vastly exceed its assets. It is currently surviving on life support provided by the director, and without this ongoing intervention, the business would be unable to meet its financial obligations.

1. Key Vital Signs

Blood Pressure (Liquidity): Dangerously Low The company’s cash reserves have plummeted from £2,032 in 2023 to just £77 in 2024. This represents a severely restricted cash flow, leaving the business with almost no liquidity to cover day-to-day expenses or respond to unexpected costs.

Cholesterol Levels (Debt vs. Assets): Severely Blocked Total liabilities stand at £7,915 against total assets of just £528. The company owes nearly 15 times more than it owns. This massive imbalance restricts the financial "circulation" of the business and indicates an unsustainable debt load.

Body Mass Index (Net Worth): Emaciated Net assets are deeply negative at -£7,387. A healthy business has positive net assets; a negative figure means the business has consumed more value than it has created over its lifetime, resulting in an accumulated deficit (P&L Reserve of -£7,487).

Heart Rate (Revenue Generation): Flatlining While specific turnover figures are not disclosed (as the company has taken advantage of small company exemptions to not file a Profit & Loss account), the dramatic drop in cash and the persistent negative equity strongly suggest that revenue generation is either non-existent or insufficient to cover operational costs.

2. Diagnosis: Chronic Insolvency

The financial data reveals a business suffering from chronic insolvency. Out of the last ten financial years, the company has had negative net assets for nine of them. The brief moment of positive equity in 2020 (£3,855) appears to have been a temporary remission, likely caused by a capital injection or the director paying down debt, rather than a fundamental cure in business performance.

The most alarming symptom is the nature of the company's debt. Of the £7,915 owed in current liabilities, £7,543 is attributed to the "Director's loan account."

What this means in plain English: The company is not surviving because of profitable operations; it is surviving entirely on life support from its owner, Mr. Thushar Baby. The director has been funding the company's losses out of his own pocket. While this shows a deep personal commitment to keeping the patient alive, it masks the underlying reality that the business model itself is not self-sustaining.

3. Prognosis: Guarded

The immediate future of ALTOBO LTD rests entirely in the hands of the director. As long as the director is willing and able to continue funding the company's losses and defer repayment of his loan, the company can continue to exist. However, this is a highly fragile state of affairs.

If the director were to suddenly withdraw support, call in the loan, or face personal financial difficulties, the company would face acute liquidity failure—unable to pay its debts as they fall due. The drop in cash from £2,032 to £77 over the latest year suggests that the company's ability to generate or hold cash is worsening, which is a worrying trend for long-term viability.

4. Recommendations: Intensive Care & Rehabilitation

To improve the financial wellness of ALTOBO LTD, the following urgent interventions are recommended:

• Surgical Restructuring (Convert Loan to Equity): The director should consider converting the £7,543 director's loan into share capital. This won't magically create cash, but it will restructure the balance sheet, replacing a demanding current liability with permanent equity. This cures the technical insolvency on paper and strengthens the company's financial immune system against external shocks.
• Diet and Exercise (Revenue Generation): The business urgently needs a sustainable revenue stream. As a software development and IT services company, the director must evaluate whether current projects are commercially viable or if the business is merely a vehicle for personal projects. A strict focus on cash-generating activities is required.
• Regular Check-ups (Cash Flow Forecasting): With only £77 in the bank, the company is one unexpected bill away from cardiac arrest. Implement a strict, rolling 13-week cash flow forecast to monitor every penny in and out, ensuring that outgoings are meticulously matched against any incoming cash or director injections.
• Evaluate the Viable Core (Strategic Review): Given that the company has been loss-making for nearly a decade, a frank assessment must be made. Is there a viable, profitable core within this business? If the software development activities cannot be monetized effectively, it may be healthier to wind down the company rather than continue providing life support indefinitely.