Company Number: 12951330

Analysis Date: 2025-07-29 15:03 UTC

1. Credit Opinion: CONDITIONAL APPROVAL
   Aashmor Limited demonstrates stable net assets and consistent fixed asset values, supported by experienced directors who share significant control. However, the company’s current liabilities are substantial (£6.7m) relative to current assets (£185k), raising concerns about short-term liquidity. The company operates in real estate investment and letting, a sector subject to market fluctuations. Credit approval is recommended with conditions requiring close monitoring of cash flow and current liabilities to ensure ongoing debt servicing capability.

2. Financial Strength
   The balance sheet reveals strong fixed assets (£7.64m) largely representing real estate holdings, underpinning the net asset base of £1.10m. Shareholders’ funds have decreased slightly from £1.20m in 2023 to £1.10m in 2024, indicating minor erosion of equity but overall financial solidity. The company’s gearing is high given long-term creditors amounting to £6.7m, which likely includes mortgage or loan financing against property assets. The stability of fixed assets alongside equity suggests moderate financial strength but reliance on external financing.

3. Cash Flow Assessment
   Current assets of £185k against current liabilities of £6.7m indicate a working capital deficit if considering all current liabilities; however, the reported net current assets of £172k (likely excluding some longer-term liabilities) suggest some buffer. The company’s ability to cover short-term obligations appears tight. Limited operating staff (1 person) implies low operational expenses but also limited internal resource capacity. Cash generation depends heavily on rental income or property sales; thus, stable cash flow needs verification. Immediate liquidity risks exist if property sales or rental income slow.

4. Monitoring Points

• Current ratio and net working capital trends to detect tightening liquidity
• Timely servicing of long-term debt obligations secured on property
• Rental income stability and occupancy rates in real estate portfolio
• Changes in property market valuations impacting asset base
• Directors’ ongoing financial management and any changes in shareholding or control