ASPIN COLLINS LIMITED

Executive Summary

Aspin Collins Limited presents a high risk profile due to persistent negative net assets and significant liquidity deficits. While compliance with filing requirements is maintained and fixed assets provide some operational foundation, the company’s heavy reliance on director loans and inability to cover short-term liabilities raise serious concerns regarding its financial stability. Further investigation into cash flow and business viability is recommended for any potential investor.

ASPIN COLLINS LIMITED - Analysis Report

Company Number: 14487349

Analysis Date: 2025-07-29 16:08 UTC

1. Risk Rating: HIGH
   The company exhibits significant solvency and liquidity concerns as evidenced by persistent and increasing net current liabilities and negative net assets over its first two years of operation. The balance sheet shows a growing deficit in shareholders' funds and a large amount of current liabilities far exceeding current assets.

2. Key Concerns:

• Solvency Risk: Net liabilities stand at approximately £59k at the latest year-end, worsening from £41k the previous year, indicating the company’s total liabilities exceed its assets substantially.
• Liquidity Issues: Current liabilities (£127,806) significantly exceed current assets (£26,555), resulting in a negative working capital of over £101k, which suggests difficulty in meeting short-term obligations.
• Reliance on Related Party Loans: A large creditor balance (£99,737) is owed to directors, representing potential dependency on insider funding rather than external financing.

3. Positive Indicators:

• Asset Base and Equipment: The company holds tangible fixed assets valued at £65,119, reflecting investment in operational equipment which may support ongoing business activities.
• Timely Compliance: No overdue filings or returns are noted, indicating good regulatory compliance.
• Active Directors and PSC Transparency: The company maintains clear records of directors and persons with significant control, suggesting good governance practices in this regard.

4. Due Diligence Notes:

• Verify the nature and terms of director loans to understand the risk and repayment expectations.
• Investigate the company’s cash flow forecasts and plans to restore positive working capital.
• Assess the profitability or operational cash generation capacity given the absence of profit and loss statements and ongoing negative equity.
• Review any contingent liabilities or off-balance sheet exposures that may exacerbate financial risk.
• Confirm the current operational status and contracts in place given the ongoing losses and financial stress.