AUBIN HOLDINGS LIMITED

Executive Summary

Aubin Holdings Limited presents a strong equity-backed balance sheet primarily composed of investments, but with a negative working capital position and significant long-term creditors requiring further scrutiny. The company’s creditworthiness is conditional on its ability to manage liquidity through intercompany funding and investment cash flows. Ongoing monitoring of debt terms, working capital, and cash flow from subsidiaries is essential to mitigate risk.

AUBIN HOLDINGS LIMITED - Analysis Report

Company Number: 14527339

Analysis Date: 2025-07-29 13:33 UTC

1. Credit Opinion: CONDITIONAL APPROVAL

Aubin Holdings Limited is a newly established holding company with a strong asset base primarily composed of investments (£23.5M) and tangible fixed assets (£154k). The company has net assets of £17.27M, indicating substantial equity backing. However, the company shows a net current liability position (£40.6k) and significant long-term creditors (£5.64M), which suggests some reliance on external funding or intercompany balances. Given the company's recent incorporation (Dec 2022) and limited trading history, combined with its current leverage and working capital position, credit approval should be conditional on ongoing monitoring and understanding the nature and maturity of its long-term creditors. The company’s ability to service debt depends on the cash flows generated by its subsidiaries or investments, which should be reviewed regularly.

2. Financial Strength:

• The balance sheet is asset-heavy with £23.6M in total assets less current liabilities.
• The fixed assets are predominantly investments in group undertakings and other entities, with no impairment noted.
• Shareholders’ funds stand at £17.27M, reflecting strong equity, but current liabilities slightly exceed current assets, resulting in a negative net working capital.
• Deferred tax provisions of £698k arise from fair value adjustments on financial assets.
• Long-term creditors of £5.64M need clarification on terms and repayment schedules.
• Minimal share capital (£2) but significant share premium (£406k) and accumulated profits (£16.86M) indicate capital injections and retained earnings from group activities.

3. Cash Flow Assessment:

• Cash on hand is modest at £100.8k relative to current liabilities of £424.7k.
• Debtors total £283.3k, primarily intercompany balances (£178k), which may or may not be readily collectible.
• Negative net current assets (-£40.6k) suggest potential short-term liquidity constraints.
• The company’s liquidity depends heavily on intercompany flows and the ability to convert investments or receive dividends from subsidiaries.
• No income statement or cash flow statement was provided, limiting direct assessment of operational cash flow generation.
• Overall, liquidity is tight but manageable if group funding and intercompany arrangements continue smoothly.

4. Monitoring Points:

• Review the terms, maturity, and interest obligations related to the £5.64M long-term creditors to assess debt servicing risk.
• Monitor the collectability and timing of intercompany debtor balances.
• Watch for changes in working capital and liquidity ratios in future filings.
• Assess any revaluation or impairment of investments in subsidiaries that could impact net assets.
• Track cash flow generation from group companies and dividend policies to ensure sufficient funds to meet obligations.
• Ensure timely filing of accounts and compliance with reporting requirements.