ARYA PROJECTS LIMITED

Executive Summary

Arya Projects Limited has made solid progress in its early years, showing improving profitability, a strengthening balance sheet, and healthy liquidity. The company’s ability to service current liabilities is supported by a strong cash position and positive working capital. Credit approval is recommended, subject to ongoing monitoring of cash flow and creditor management.

ARYA PROJECTS LIMITED - Analysis Report

Company Number: 14030901

Analysis Date: 2025-07-20 17:07 UTC

1. Credit Opinion: APPROVE
   Arya Projects Limited demonstrates improving financial strength and liquidity in its second full year of trading. The company is profitable, with retained earnings rising from £10.9k to £63.9k, and has positive net current assets (£28.7k) as of April 2024. While current liabilities have increased, the company maintains a healthy cash balance of £195k, supporting its ability to meet short-term obligations. Management appears capable, with no adverse director conduct records and a single controlling shareholder providing clear oversight. The company's activity in commercial building construction is stable, and there are no overdue filings, indicating sound governance. Overall, the risk profile is moderate with improving credit metrics, suitable for credit approval.

2. Financial Strength:
   The balance sheet shows tangible fixed assets of £35.2k, reflecting recent capital investment (notably a new motor vehicle). Current assets increased significantly to £268.7k from £173k, mainly driven by cash rising from £47k to £195k, offsetting a decrease in debtors (£125.6k to £73.4k). Current liabilities rose to £240k, including hire purchase liabilities of £22k and increased taxation and other creditors. Despite the rise in liabilities, the company’s net assets grew substantially to £63.9k from £11k, supported by retained profits of £83k less dividends of £30k. The equity base is modest but growing, consistent with a small but expanding enterprise.

3. Cash Flow Assessment:
   Cash reserves are strong at £195k, a substantial improvement from the prior year, indicating improved liquidity and operational cash flow. Debtor levels have decreased, improving cash conversion, and the company maintains positive net current assets (£28.7k). However, trade creditors and other creditors have increased, suggesting working capital is being supported by supplier credit and hire purchase arrangements. The company currently has manageable short-term obligations and sufficient cash buffers to cover its liabilities within one year.

4. Monitoring Points:

• Track continued profitability and cash flow generation to ensure sustained dividend payments do not impair liquidity.
• Monitor creditor days and the buildup of other creditors to avoid potential working capital strain.
• Observe impact of hire purchase obligations on cash flow and debt service capacity.
• Keep an eye on debtor collection efficiency to maintain healthy cash conversion cycles.
• Review any changes in ownership or director appointments that might impact governance or credit risk.