Company Number: 12628530

Analysis Date: 2025-07-20 15:38 UTC

1. Credit Opinion: APPROVE with caution Aaron Leeds Limited demonstrates steady growth in net assets and working capital over the last three years, indicating improving financial strength and operational stability. The company holds a strong cash position relative to current liabilities, which suggests a good ability to service short-term obligations. However, the presence of non-current creditors (longer-term liabilities) has increased notably, which warrants monitoring to ensure these obligations remain manageable. The director’s background as an electrician aligns with the company's electrical installation activity but does not provide direct evidence of financial expertise, so prudent monitoring is advised.

2. Financial Strength: The company’s net assets have increased significantly from £14,523 in 2023 to £35,292 in 2024, driven primarily by a substantial increase in cash and net current assets. Fixed assets remain modest and stable, reflecting limited capital expenditure on tangible items. Shareholders’ funds are positive and growing, reflecting retained earnings accumulation. The balance sheet shows a conservative capital structure with minimal share capital (£1) and increasing creditors due after more than one year (£20,906), doubling from the previous year, which could represent loans or other longer-term financing.

3. Cash Flow Assessment: Cash at bank has increased from £24,872 in 2023 to £60,863 in 2024, strengthening liquidity and reducing short-term cash flow risk. Net current assets have improved from £18,906 to £52,179, indicating ample working capital to cover current liabilities (£8,684). This strong liquidity position suggests the company can meet short-term obligations comfortably without relying on additional external funding. However, increased long-term creditors should be reviewed for repayment terms and potential impact on future cash flows.

4. Monitoring Points:

• Track the nature and repayment schedule of the increased long-term creditors to assess future cash flow pressures.
• Monitor profit generation in future accounts, as current data does not include detailed profit and loss figures.
• Observe any changes in cash balances to ensure liquidity remains strong, particularly if the company expands operations or incurs more fixed asset investment.
• Review director’s management and financial control practices as the company grows, given the non-specialist background.