ASPECT EVOLUTIONS LIMITED

Executive Summary

Aspect Evolutions Limited demonstrates a weak financial profile with significant working capital deficits and limited equity, raising concerns about its ability to meet short-term liabilities and service new credit. The company’s liquidity position is strained, and lack of audited profit information restricts clear visibility on cash generation. Given these factors, credit approval is not recommended without substantial improvement in liquidity and capital structure.

ASPECT EVOLUTIONS LIMITED - Analysis Report

Company Number: 13570513

Analysis Date: 2025-07-20 16:48 UTC

1. Credit Opinion: DECLINE
   Aspect Evolutions Limited exhibits a fragile financial position with persistent net current liabilities exceeding £240k and minimal net assets (£7,659 as of 2025). The company’s fixed assets remain stable at £249,200, but the current liabilities nearly match total assets, severely constraining liquidity. The absence of profit and loss data, combined with the micro-entity filing regime and no audit, limits the transparency of earnings and cash flow performance. The company’s working capital deficiency and tight equity base raise concerns about its ability to meet short-term obligations and service additional debt without external support.

2. Financial Strength:
   The balance sheet shows a consistent pattern over recent years of net current liabilities around £240k to £250k, indicating ongoing working capital stress. Fixed assets of £249,200 are significant but illiquid, limiting their utility to cover short-term debts. Shareholders’ funds have slightly improved from £319 in 2024 to £7,659 in 2025, but remain very low relative to liabilities. The company has maintained a stable employee base of 2, suggesting a small operational scale consistent with its micro classification. Overall, the financial strength is weak, with limited equity buffer and negative working capital.

3. Cash Flow Assessment:
   Current assets consist primarily of cash and receivables at £11,071, which is insufficient to cover the £252,612 current liabilities. The negative net current assets of £241,541 indicate liquidity stress, implying the company may struggle to meet short-term creditor demands without refinancing or asset disposals. The lack of profit and loss data restricts insight into operational cash generation, but the recurring working capital deficit is a red flag. The company’s cash flow position is precarious and suggests a high risk of default on short-term obligations if cash inflows do not improve.

4. Monitoring Points:

• Monitor quarterly cash flow statements to detect any improvement or deterioration in liquidity.
• Watch for changes in current liabilities and any restructuring efforts to reduce short-term debt.
• Track any increase in shareholders’ funds or capital injections that could strengthen the equity base.
• Verify filing of future accounts and confirmation statements to ensure ongoing compliance and transparency.
• Observe any changes in management or strategic direction that could impact financial stability.