ALSTON ENGINEERING SERVICES LTD

Executive Summary

Alston Engineering Services Ltd has demonstrated solid financial progress in its initial years, marked by growing net assets and positive working capital. While the company’s scale and trading history are limited, current liquidity and asset backing provide reasonable assurance for moderate credit exposure. Conditional approval is recommended with ongoing monitoring of cash flows and secured debt obligations.

ALSTON ENGINEERING SERVICES LTD - Analysis Report

Company Number: 14222397

Analysis Date: 2025-07-20 19:16 UTC

1. Credit Opinion: CONDITIONAL APPROVAL
   Alston Engineering Services Ltd is a newly established private limited company (incorporated July 2022) operating in the engineering sector. The company shows positive growth in net assets and working capital from its first full year of trading, indicating improving financial stability. However, as a micro-entity with limited trading history and modest scale, credit exposure should be moderate and subject to periodic review. The presence of secured hire purchase debt against fixed assets is noted and should be monitored. Given the positive trajectory but short trading history, credit approval is recommended with conditions on exposure limits and ongoing financial monitoring.

2. Financial Strength:
   The company’s balance sheet as of 31 July 2024 shows total net assets of £48,475, up significantly from £550 in the prior year. Fixed assets of £32,262 are supported by a hire purchase liability of £17,925 secured on those assets. Current assets (£87,874) comfortably exceed current liabilities (£64,491), producing net current assets (working capital) of £23,383. This positive working capital position provides a buffer to meet short-term obligations. Shareholders’ funds equal net assets, reflecting no external equity dilution. Overall, the financial position is improving, with moderate gearing due to hire purchase obligations but no indication of over-leverage.

3. Cash Flow Assessment:
   The increase in current assets, mainly cash or receivables, relative to current liabilities suggests the company maintains adequate liquidity to service short-term debts. The net current asset position of £23,383 indicates sufficient working capital for operational needs. However, given the company’s small scale and early stage, cash flow volatility risk remains. Monitoring cash flow statements (not provided here) and receivables aging would be prudent to ensure consistent liquidity. The hire purchase repayments will impact cash flow and should be factored into debt servicing capacity.

4. Monitoring Points:

• Maintain regular review of liquidity ratios and working capital to detect any signs of cash flow stress.
• Monitor repayments and covenant compliance on hire purchase liabilities secured against fixed assets.
• Track revenue growth and profitability trends as they will directly influence cash generation capability.
• Review management appointments and ownership stability; currently controlled 100% by Mr. Steven Walter Sidwell, with a recent director addition in 2024 indicating possible business development.
• Watch for any overdue filings or changes in company status that may impact creditworthiness.