A&KO'S PROJECTS LIMITED

Executive Summary

A&KO'S Projects Limited presents a stable balance sheet with positive working capital and cash, indicating basic financial health for a young company. However, limited trading history, lack of employees, and abridged accounts restrict full credit confidence. Conditional credit approval is recommended with ongoing financial monitoring to ensure sustainable cash flow and operational viability.

A&KO'S PROJECTS LIMITED - Analysis Report

Company Number: 13618856

Analysis Date: 2025-07-20 18:44 UTC

1. Credit Opinion: CONDITIONAL APPROVAL
   A&KO'S Projects Limited shows a positive net asset position and working capital as of its latest accounts (September 2023), indicating basic financial stability. However, the company is very young (incorporated 2021) with limited operational history and no employees reported, which restricts evidence of ongoing operational viability and revenue generation. The lack of an audit and abridged accounts filing also limit transparency. Credit approval is recommended with conditions such as periodic financial monitoring and possibly personal or director guarantees until a more robust financial track record is established.

2. Financial Strength:
   The balance sheet reflects net assets of £29,416, all attributable to retained earnings, with no fixed assets reported. Current assets (£53,082) exceed current liabilities (£23,666), resulting in positive net current assets of £29,416. Cash holdings are relatively strong at £37,049, supporting liquidity. The company’s modest capital structure (share capital £1) and absence of employees suggest a lean operational model, likely reliant on subcontractors or owner involvement. The rapid growth from net assets of £1 in 2022 to nearly £30k in 2023 is notable but should be validated through continued trading performance.

3. Cash Flow Assessment:
   Cash at bank of £37,049 against current liabilities of £23,666 provides a current ratio of approximately 2.24, indicating adequate short-term liquidity to meet obligations. Debtors of £16,033 represent receivables due and should be monitored for aging and collectability. The absence of employee costs may reduce cash outflows, but the company’s ability to generate sustainable cash flow from operations remains unproven given the lack of detailed profit and loss disclosures.

4. Monitoring Points:

• Track subsequent trading accounts and cash flow statements to confirm sustained profitability and liquidity.
• Monitor debtor aging and creditor payment practices to evaluate working capital management.
• Review any changes in employee count or operational scale that might impact financial risk.
• Ensure timely filing of full accounts and consider requesting audited accounts if turnover increases or larger credit exposure is sought.
• Assess director and shareholder changes or external guarantees that could affect credit risk.