Company Number: 14528500

Analysis Date: 2025-07-29 19:54 UTC

1. Credit Opinion: DECLINE
   AAJB Associates Limited exhibits significant liquidity concerns with net current liabilities increasing sharply from £1,240 in 2023 to £7,276 in 2024. The company’s cash position deteriorated markedly, dropping from £5,350 to £901. This signals cash flow stress and an inability to meet short-term obligations promptly. The minimal net asset base of £5 further undermines financial resilience. Given its short trading history since incorporation in late 2022 and the absence of profitability details (profit & loss not filed), the company presents a high credit risk. Without clear evidence of improving cash flow or external financing, extending credit facilities would be imprudent.

2. Financial Strength:
   The balance sheet shows a small but positive net asset position (£5) as at 31 December 2024, down from £1,376 the prior year. Fixed assets grew due to investments in office equipment and fixtures but this has not translated to improved working capital. Current liabilities of £10,006 significantly exceed current assets of £2,730, indicating poor liquidity management. The company is reliant on a single director-shareholder controlling 75-100% of shares and voting rights, which concentrates control but also implies limited external equity support.

3. Cash Flow Assessment:
   Cash reserves have diminished substantially by £4,449 over 2024, from £5,350 to £901, while creditors increased by approx. £1,400. Debtors remained relatively stable but are insufficient to cover liabilities. Net current liabilities indicate an ongoing working capital deficit, suggesting the company may struggle to meet immediate liabilities without additional financing or improved cash collection. The company’s operating cash flow is likely negative or constrained, warranting caution.

4. Monitoring Points:

• Liquidity trends: watch for improvements in cash balances and reduction of current liabilities
• Debtor collection efficiency and aging of receivables
• Profitability and turnover growth once profit & loss accounts become available
• Director’s ability to inject capital or secure external funding
• Changes in creditor terms or any overdue payments to suppliers or HMRC