3S ABERDEEN LTD

Executive Summary

3S Aberdeen Ltd exhibits improving financial health with strong liquidity and growing equity, reflecting effective management and low credit risk. The company shows capacity to meet its obligations and sustain operations, making it a suitable candidate for credit approval. Continued monitoring of cash flow and working capital metrics is recommended to maintain oversight of financial stability.

3S ABERDEEN LTD - Analysis Report

Company Number: SC676626

Analysis Date: 2025-07-20 19:03 UTC

1. Credit Opinion: APPROVE
   3S Aberdeen Ltd demonstrates improving financial metrics and a solid liquidity position, indicating a strong capacity to meet short-term obligations. The company shows a clear growth trajectory with net current assets nearly doubling year-on-year and shareholders' funds increasing by approximately 76% from 2022 to 2023. There are no adverse indicators such as overdue filings or director disqualifications. Based on available data, the company presents a low credit risk profile suitable for credit approval.

2. Financial Strength:
   The balance sheet shows a steady increase in shareholders' funds from £53,058 in 2022 to £93,498 in 2023, reflecting retained earnings growth and improved net asset position. The company maintains tangible fixed assets of £5,476, which are modest but appropriate for their business activity. Current assets decreased from £212,141 to £157,058, primarily due to a reduction in cash balances. However, current liabilities have fallen significantly from £165,928 in 2022 to £69,036 in 2023, improving working capital and overall solvency. The company remains classified as a small entity, with controlled leverage and no long-term debt disclosed, indicating financial prudence.

3. Cash Flow Assessment:
   Cash at bank decreased to £127,797 from £188,690 but remains sufficient to cover current liabilities (£69,036) comfortably, with a current ratio above 2.0. Debtor days appear well managed with trade debtors increasing moderately to £20,759, suggesting stable cash inflows. The significant reduction in creditors, especially other creditors falling from £155,058 to £54,196, indicates effective management of payables and improved liquidity. Overall, the company's cash flow position is sound, with adequate working capital to support ongoing operations and debt servicing.

4. Monitoring Points:

• Monitor cash balance trends closely, as the decrease in cash at bank warrants attention to ensure it does not signal cash flow pressure.
• Keep watch on trade debtor aging and collections efficiency to maintain liquidity.
• Observe any significant increase in current liabilities or creditor balances that might affect short-term solvency.
• Track continued profitability and retained earnings growth in future filings to confirm positive financial trajectory.
• Review any changes in director appointments or company status that could impact governance or operational stability.