Company Number: 14859365

Analysis Date: 2025-07-29 20:20 UTC

1. Credit Opinion: APPROVE with caution. AK Services 1 Ltd is a newly incorporated private limited company (since May 2023) with its first set of filed accounts to May 2024. The company demonstrates a positive net asset position and working capital, indicating it can currently meet short-term obligations. However, the business is at a very early stage with minimal trading history and limited financial data, which introduces some uncertainty regarding its ability to sustain operations and service debt over the medium term. The director’s full ownership and involvement provide clear management accountability, but the lack of historical performance data necessitates careful ongoing monitoring.

2. Financial Strength: The balance sheet shows net assets of £19,016 primarily driven by tangible fixed assets (£9,750) and positive working capital (£9,266). Current assets of £38,345 include cash (£24,925), debtors (£7,100), and stock (£6,320), against current liabilities of £29,079. The company has minimal share capital (£1), and all reserves are retained earnings. The tangible asset base supports some operational capacity, but the relatively high level of current liabilities compared to current assets suggests moderate leverage at this stage.

3. Cash Flow Assessment: Cash on hand (£24,925) provides a reasonable liquidity buffer relative to current liabilities (£29,079), supplemented by receivables and stock. The positive net current assets indicate the company is not reliant on short-term borrowing to meet immediate obligations. However, given the company’s infancy and limited financial history, cash flow predictability is uncertain. Effective management of working capital and receivables will be critical to maintain liquidity.

4. Monitoring Points:

• Revenue and profit trends in the next 1-2 years to assess growth trajectory and earnings stability.
• Changes in working capital components, especially trade creditors and debtors, to monitor liquidity management.
• Cash flow consistency to ensure ongoing ability to meet operational and financial obligations.
• Director’s ongoing financial stewardship and any changes in ownership or control.
• Timely filing of future accounts and confirmation statements to maintain transparent credit profile.