ACAH CONSTRUCTION LIMITED

Executive Summary

ACAH CONSTRUCTION LIMITED exhibits a stable and improving financial position with sufficient liquidity and positive working capital. The company’s growth in net assets and controlled liabilities support a strong credit profile suitable for credit facility approval. Continued monitoring of liquidity metrics and operational expansion is recommended to maintain financial health.

ACAH CONSTRUCTION LIMITED - Analysis Report

Company Number: 12533609

Analysis Date: 2025-07-20 17:36 UTC

1. Credit Opinion: APPROVE
   ACAH CONSTRUCTION LIMITED demonstrates a stable and improving financial position over the last four years. The company shows consistent growth in net assets and net current assets, indicating sound financial management and an ability to meet short-term obligations. There are no overdue filings or signs of financial distress. The director is experienced in construction, and the business is active with increasing employee numbers, supporting operational capacity. Based on the available data, the company appears capable of servicing credit facilities with manageable risk.

2. Financial Strength:
   The company’s net assets have increased from £1,570 in 2020 to £5,025 in 2024, reflecting accumulated profits and retained earnings. Shareholders’ funds mirror this increase, showing a strengthening equity base. The company maintains positive working capital, with net current assets rising from £1,570 to £5,025 over four years. Cash balances have grown modestly but remain sufficient relative to current liabilities, which have decreased from £3,163 in 2023 to £2,283 in 2024, indicating improved liquidity management. The small share capital (£100) is typical for private limited companies and does not detract from overall financial stability.

3. Cash Flow Assessment:
   Cash on hand has increased gradually to £7,308 as of March 2024, providing a comfortable buffer against current liabilities of £2,283. Positive net current assets and improved working capital suggest the company can cover short-term debts without liquidity strain. There are no indications of overdue creditors or tax liabilities that might impair cash flow. The average number of employees has increased from 6 to 7, suggesting expanding operations, but this is not likely to impose excessive cash demands given current liquidity.

4. Monitoring Points:

• Monitor continued growth in net assets and working capital to ensure ongoing financial resilience.
• Watch for any significant increases in current liabilities or trade creditors that could pressure liquidity.
• Keep track of cash conversion cycles and debtor collection periods, especially given the construction sector’s potential for payment delays.
• Observe any changes in management or director conduct that might affect governance or credit risk.