Company Number: SC728303

Analysis Date: 2025-07-20 13:13 UTC

1. Risk Rating: LOW
   Ash Marine Engineering Ltd demonstrates a positive net asset position and growing working capital over two years. The company shows no overdue filings and has disclosed no auditor’s concerns. Its solvency and liquidity appear stable for a small engineering firm at this stage.

2. Key Concerns:

• Limited operating history, incorporated in 2022, restricting trend analysis and long-term sustainability assessment.
• No employees reported during the last two years, raising questions about operational capacity or reliance on subcontractors.
• Low cash balance relative to current assets and a significant portion of debtors, which could pose liquidity timing risks.

3. Positive Indicators:

• Strong net current assets increased from £3,487 (2023) to £13,636 (2024), indicating improving short-term financial health.
• Net assets almost doubled from £9,856 (2023) to £19,868 (2024), showing retained earnings growth and capital strength.
• No overdue statutory filings and compliance with Companies Act 2006 and FRS 102 Small Entities standards, indicating sound governance.
• Ownership and control consolidated under a single director (Paul Ashcroft), simplifying decision-making and accountability.

4. Due Diligence Notes:

• Investigate the nature of trade and other debtors (£15,031), specifically their collectability and aging profile, to assess liquidity risk.
• Clarify the business model and operational structure given zero employees reported; understand subcontractor or outsourcing arrangements.
• Review cash flow forecasts and working capital management practices to ensure ongoing liquidity adequacy.
• Confirm absence of contingent liabilities or related party transactions, especially given director loans were present in 2023 but not 2024.
• Consider obtaining management accounts or budgets to evaluate operational performance beyond year-end snapshots.