AISH OPTICAL LTD

Executive Summary

Aish Optical Ltd is a micro-entity with improving net assets and working capital, demonstrating the financial capacity to support small credit facilities. The business is stable with sound liquidity, though limited operating history and scale suggest conservative credit limits. Ongoing monitoring of turnover growth and working capital trends is recommended.

AISH OPTICAL LTD - Analysis Report

Company Number: 13836734

Analysis Date: 2025-07-20 11:34 UTC

1. Credit Opinion: APPROVE
   Aish Optical Ltd demonstrates improving financial strength with positive net assets and working capital growth over the last two years. The company operates in a niche healthcare segment with a single director who is also the sole shareholder, indicating clear control and decision-making. Given the micro-entity scale and stable financial position, the company appears capable of servicing modest credit facilities. However, as a young business with limited financial history and only one employee, credit approval should be for conservative limits aligned with its size and cash flow capacity.

2. Financial Strength:
   The balance sheet shows net assets increasing from £942 (2023) to £12,474 (2024), reflecting retained earnings and asset growth. Fixed assets rose modestly to £4,065, while current assets doubled to £52,659 mainly through cash or receivables, supporting liquidity. Current liabilities increased to £44,250 but remain well covered by current assets, generating positive net current assets of £8,409. The company’s equity base is small but growing, consistent with micro-entity status and gradual scaling of operations.

3. Cash Flow Assessment:
   The positive net current assets indicate sufficient short-term liquidity to meet obligations due within one year. The increase in current assets relative to liabilities suggests healthy working capital management. With only one employee and a director involved in operations, overheads are likely minimal, supporting manageable cash outflows. No audit exemptions and timely filing of accounts and returns show compliance and financial discipline, reducing risk of unexpected liquidity issues.

4. Monitoring Points:

• Track growth in turnover and profitability as these figures are currently unavailable but critical for assessing repayment capacity.
• Monitor current liabilities relative to receivables and cash to ensure working capital remains positive.
• Observe director’s engagement and any changes in ownership or management that could impact governance or financial stewardship.
• Review subsequent filings for any material changes in financial position or overdue accounts indicating distress.