ASPECT (HULL) LTD

Executive Summary

Aspect (Hull) Ltd shows a strong and improving financial position with increasing net assets, positive working capital, and adequate liquidity. The company is well-managed by a single director and compliant with all filing requirements. These factors support a credit approval with confidence in the company's ability to meet its financial obligations.

ASPECT (HULL) LTD - Analysis Report

Company Number: 12631199

Analysis Date: 2025-07-29 17:14 UTC

1. Credit Opinion: APPROVE. Aspect (Hull) Ltd demonstrates a solid and improving financial position with consistent growth in net assets and positive working capital. The company is active, compliant with filing deadlines, and controlled by a single director with full ownership, suggesting clear accountability. The sector (technical testing and analysis) tends to require ongoing investment in fixed assets, which the company manages prudently. There are no red flags such as overdue filings, director disqualifications, or insolvency indicators. The company’s financial trajectory shows steady asset growth and improved liquidity, supporting debt servicing capability.

2. Financial Strength: The company’s balance sheet shows a strong upward trend in net assets, increasing from £21.7k in 2020 to £151.2k in 2024. Fixed assets have increased by over 166% (£56.5k to £151k), reflecting investment consistent with the technical testing industry. Net current assets improved significantly to £49.9k in 2024 from negative £12.8k in 2020, indicating better short-term financial health. Current liabilities are stable relative to current assets, and longer-term liabilities are moderate (£49.6k). Shareholders’ funds align with net assets, showing retained earnings growth and absence of capital erosion.

3. Cash Flow Assessment: The company’s cash position is adequate and growing, with cash balances rising from £22.3k in 2020 to £50.8k in 2024. Debtors have increased in line with turnover growth, but the current ratio (current assets £163.2k vs current liabilities £113.3k) and positive net current assets indicate the company can comfortably meet short-term obligations. The improving working capital and cash reserves suggest sustainable liquidity and ability to cover operating expenses and service debt. There is no evidence of liquidity strain.

4. Monitoring Points:

• Maintain watch on debtor days and credit control to prevent cash flow stress as debtors have increased.
• Monitor any material changes in long-term liabilities that could impact gearing and financial flexibility.
• Observe continued asset investment to ensure it translates into revenue growth and profitability.
• Track any material changes in director or ownership structure given single director control.