Company Number: SC685724

Analysis Date: 2025-07-29 20:02 UTC

1. Credit Opinion: APPROVE with conditions.
   AAHN LIMITED operates in the take-away food sector and has maintained a consistent financial position over the past four years. The company shows positive net current assets and net assets, indicating a sound working capital position and equity base for a micro-entity. However, the slight decline in fixed assets and net assets year-on-year suggests cautious monitoring. Given the stable but modest scale and limited financial disclosures typical for a micro-entity, approval is recommended with conditions to review updated financials annually and monitor cash flow trends closely.

2. Financial Strength:
   The balance sheet shows total net assets of £22,219 as of 31 January 2024, down from £26,585 in 2021. Fixed assets have decreased from £21,465 to £17,386 over this period, while current assets have increased marginally from £9,500 to £11,425. Current liabilities have increased from £4,380 to £6,592, but net current assets remain positive at £4,833, reflecting a stable short-term financial position. The company’s shareholders’ funds equal net assets, consistent with no external debt recorded. Overall, the balance sheet indicates modest but stable financial strength appropriate for a micro-business.

3. Cash Flow Assessment:
   Net current assets remain positive, indicating adequate liquidity to cover short-term obligations. The increase in current liabilities slightly outpaces the increase in current assets, but not to a concerning degree. With an average of 3 employees and a micro-entity scale, cash flow is likely tightly managed. No trading losses or provisions are evident. However, the small absolute size of working capital means liquidity could be vulnerable to unexpected disruptions or delayed receivables. Close monitoring of cash flow and creditor payment terms is advised.

4. Monitoring Points:

• Track changes in net current assets and current liabilities to ensure liquidity remains sufficient.
• Monitor fixed asset levels and capital expenditure to understand investment or asset disposal impacts.
• Review annual accounts promptly to observe any deterioration in net assets or increased gearing.
• Watch for any delays or irregularities in filing accounts or confirmation statements.
• Monitor director conduct and any changes in management or ownership that could affect governance.