AK AND SIMS LIMITED

Executive Summary

AK AND SIMS LIMITED demonstrates a stable and improving financial position with growing net assets and strong working capital relative to its size, supporting its ability to meet short-term obligations. While limited scale and lack of audited profit data introduce some risk, current financial indicators suggest the business can service credit facilities if monitored closely. Conditional approval is recommended with emphasis on ongoing cash flow and profitability monitoring.

AK AND SIMS LIMITED - Analysis Report

Company Number: 14417304

Analysis Date: 2025-07-29 18:14 UTC

1. Credit Opinion: APPROVE with conditions. AK AND SIMS LIMITED, a micro-entity operating a dental practice, shows improving net assets and positive working capital over the last two years, indicating growing financial stability. However, limited scale, reliance on just two employees, and relatively modest asset base constrain credit risk appetite. Approval should be conditional on regular monitoring of cash flow and confirmation of continued profitability given the absence of audited profit and loss data.

2. Financial Strength: The company’s balance sheet reveals a net asset growth from £10,229 in 2024 to £19,652 in 2025, primarily driven by an increase in net current assets from £10,510 to £20,346. Fixed assets remain minimal (£1,110), consistent with service industry norms. The capital and reserves have almost doubled within one year, reflecting retained earnings or capital injection. Current liabilities decreased slightly, improving liquidity ratios. Overall, the financial position is sound for a micro-entity, with no indications of over-leverage or solvency concerns.

3. Cash Flow Assessment: Current assets of £46,253 against current liabilities of £29,494 yield a positive net working capital of £20,346, which is a healthy liquidity buffer for short-term obligations. The company has non-cancellable lease commitments of £23,097, which represent a significant fixed cost relative to turnover typical for a small dental practice, but manageable given current liquidity. Absence of detailed cash flow or profit and loss data limits full cash flow analysis, but working capital trends and accruals/deferred income figures suggest manageable operational cash flows.

4. Monitoring Points:

• Profitability trends: Since P&L details are not filed, it is vital to monitor future accounts for sustained profitability.
• Lease obligations: The company’s lease commitments should be reviewed regularly to ensure they remain aligned with cash flow capacity.
• Working capital management: Continued positive net current assets are critical to maintain liquidity.
• Director and shareholder stability: Both PSCs are involved in management; any changes here could impact governance and credit risk.
• Filing compliance: Maintain vigilance on timely submission of accounts and confirmation statements to avoid regulatory risk.