ASSIMILA LIMITED
Company number 05967399 · Monitor this company
This analysis was written by an AI from the company's public filings. It may contain errors or omissions and is not financial or professional advice.
Credit Analysis: ASSIMILA LIMITED
1. Credit Opinion: APPROVE
Reasoning: Assimila Limited presents a robust credit profile characterised by consistently growing net assets, an exceptionally strong liquidity position, and negligible leverage. The company has no long-term debt, cash reserves exceed total liabilities by a factor of four, and retained earnings have grown each year, demonstrating sustained profitability. The principal risk is key-person dependency given concentrated ownership, but this is mitigated by the company's conservative financial management and substantial equity buffer. Credit facilities should be readily serviceable from existing cash flows and liquid reserves.
2. Financial Strength
Balance Sheet Summary (FY2025):
| Metric | £ | Prior Year £ |
|---|---|---|
| Total Assets | 966,741 | 982,402 |
| Total Liabilities | 182,477 | 283,453 |
| Net Assets | 790,228 | 705,529 |
| Shareholders' Funds | 790,228 | 705,529 |
| Tangible Fixed Assets | 7,952 | 8,773 |
Key Ratios:
| Ratio | Value |
|---|---|
| Gearing (Debt/Equity) | 0% (no long-term debt) |
| Liabilities/Net Assets | 23.1% |
| Net Asset Growth (YoY) | +12.0% |
Assessment: The balance sheet is exceptionally strong. Net assets have grown from £311,839 (FY2019) to £790,228 (FY2025) — a compound annual growth rate of approximately 16.7%. All liabilities are current (due within one year), with no long-term borrowings. The equity base of £790,228 against called-up share capital of just £1,000 indicates substantial profit retention — the business has funded itself organically without recourse to external debt. Tangible assets are minimal (£7,952), consistent with an asset-light management consultancy/research business. Liabilities reduced by £100,976 year-on-year, further strengthening the position.
The only observation is a slight decline in total assets year-on-year (£982,402 → £966,741), driven primarily by a reduction in debtors. This is not concerning given the corresponding reduction in liabilities and the increase in net assets.
3. Cash Flow Assessment
Liquidity Position (FY2025):
| Metric | £ |
|---|---|
| Cash at Bank | 743,252 |
| Debtors | 223,489 |
| Current Assets | 966,741 |
| Current Liabilities | 182,477 |
| Net Current Assets | 784,264 |
| Ratio | Value |
|---|---|
| Current Ratio | 5.3x |
| Quick Ratio | 5.3x |
| Cash Ratio | 4.1x |
| Cash/Total Liabilities | 4.1x |
Assessment: Liquidity is outstanding. The current ratio of 5.3x and cash ratio of 4.1x far exceed typical covenant requirements. Cash at bank (£743,252) alone covers total liabilities more than four times over. The company could settle all obligations from cash reserves without needing to realise any debtor balances.
Cash has grown from £277,336 (FY2019) to £743,252 (FY2025), reflecting strong operational cash generation. The debtor book decreased from £330,660 to £223,489, which may indicate improved collection, lower revenue, or a shift in contract mix — this warrants monitoring but is not inherently negative.
Working capital management appears conservative and effective. No stock is carried (consistent with a service business), and the debtor book represents approximately 3.5 months of operating costs based on the liability run rate, suggesting reasonable payment terms.
Retained earnings increased from £704,529 to £789,228, indicating approximately £84,699 of profit after tax for FY2025 — adequate profit cover for any reasonable debt servicing requirement.
4. Monitoring Points
| Metric | Current Value | Watch Threshold | Rationale |
|---|---|---|---|
| Cash Position | £743,252 | < £400,000 | Primary liquidity buffer; significant decline would signal operational stress |
| Net Current Assets | £784,264 | < £500,000 | Working capital headroom; deterioration impacts payment capacity |
| Retained Earnings Trend | Growing annually | Decline over 2 consecutive years | Signals shift from profit to loss |
| Debtor Levels | £223,489 | > £400,000 or rapid decline | Unusual movements may indicate revenue volatility or collection issues |
| Director Changes | Shaw resigned Aug 2026 | Further resignations | Key person risk; monitor for governance instability |
| Filing Compliance | Current | Any overdue filings | Regulatory compliance indicator |
| Creditor Days | Not disclosed | Significant increase | May signal cash flow pressure |
Additional Considerations: - Key Person Risk: Dr Philip Jonathan Styles controls >75% of shares and voting rights. Incapacity or departure would materially impact operations. Consider requiring key-person insurance for larger facilities. - Revenue Visibility: The filed accounts (small company regime) do not disclose turnover or detailed P&L. For larger facilities, request management accounts to assess revenue stability and contract pipeline. - Sector Risk: Operating in natural sciences R&D and management consultancy (SIC 72190) — revenue may be project-based and potentially lumpy. University-adjacent businesses may also be sensitive to research funding cycles. - Related Party Transactions: No detail disclosed in abbreviated accounts. Request confirmation of any intercompany balances or guarantees. - Recent Director Resignation: Andrew Leslie Shaw resigned in August 2026. Clarify circumstances and whether this creates any operational gaps.