Company Number: 12611428

Analysis Date: 2025-07-20 16:10 UTC

1. Credit Opinion: APPROVE
   Aream Advisors Ltd demonstrates strong financial health with substantial net assets and cash reserves indicating a robust ability to meet debt obligations. The company’s first-year trading results during the COVID-19 pandemic were impressive, with a reported profit of over £17.6 million and turnover exceeding £27 million. The directors show prudent management with no dividends declared, retaining earnings to support continued growth. The lack of overdue filings and stable management further supports creditworthiness.

2. Financial Strength:
   The balance sheet as of 31 March 2021 shows net assets of approximately £17.65 million, supported by substantial current assets (£24.69 million) and minimal fixed assets (£88k). Cash holdings of £19.48 million provide a strong liquidity buffer. Current liabilities stand at £7.11 million, resulting in net current assets (working capital) of around £17.58 million, reflecting a solid short-term financial position. The equity structure is straightforward with a nominal share capital of £1 and the majority ownership held by Aream Group LLP, indicating clear control and accountability.

3. Cash Flow Assessment:
   The company’s strong cash position at year-end indicates excellent liquidity, ensuring the ability to service operating expenses and any short-term liabilities. The substantial cash reserves relative to current liabilities provide confidence in ongoing operational funding and debt servicing capacity. The business model, however, is exposed to variability in cash flow given the lack of recurring revenue, but the directors actively monitor a pipeline of future business to mitigate this risk.

4. Monitoring Points:

• Revenue and profit trends beyond the initial year to confirm sustainability and growth trajectory.
• Continued management of working capital, especially monitoring debtor collections and current liabilities to maintain liquidity.
• Impact of market conditions on the technology and M&A advisory sector, including potential volatility in deal flow.
• Any changes in ownership or management structure that may affect governance or financial control.
• Monitoring compliance with filing deadlines and any changes in regulatory environment affecting consultancy services.