AUGHTON UTILITIES LTD

Executive Summary

Aughton Utilities Ltd is a start-up entity with a weak financial foundation, reflected in negative net assets and working capital deficits. The company currently lacks the financial strength and liquidity to support credit exposure safely. Careful monitoring of operational progress and financial improvements is essential before reconsidering credit facilities.

AUGHTON UTILITIES LTD - Analysis Report

Company Number: 14688200

Analysis Date: 2025-07-29 13:43 UTC

1. Credit Opinion: DECLINE
   Aughton Utilities Ltd is a newly incorporated private limited company with limited financial history and a negative net asset position of £3,659 as of its first reporting period ending 28 February 2024. The company shows current liabilities exceeding current assets, resulting in negative working capital and net liabilities. This weak financial position, combined with no reported turnover or profit data and a single director/shareholder, raises significant concerns over its ability to meet debt obligations or absorb operational risks. Without evidence of external financial support or a robust business plan indicating imminent profitability, extending credit would carry high risk.

2. Financial Strength:
   The balance sheet reflects a net liability position with total current liabilities (£10,447) exceeding current assets (£6,788), yielding negative net current assets of £3,659. The company’s share capital is nominal (£1), and accumulated losses are £3,660. There are no fixed assets or other long-term resources reported. The absence of tangible assets and equity buffer indicates very low financial resilience and limited capacity to withstand economic shocks.

3. Cash Flow Assessment:
   Cash balances are low (£6,788) and insufficient to cover short-term liabilities, which primarily consist of taxation and social security obligations. The negative working capital suggests potential liquidity constraints, increasing the risk of payment delays or defaults. No detailed cash flow statement is available, but the financial snapshot indicates tight liquidity and limited operational cash flow generation so far.

4. Monitoring Points:

• Improvement in net current assets and overall liquidity position
• Evidence of consistent turnover generation and profitability
• Timely settlement of tax and social security liabilities
• Growth in share capital or external funding to strengthen equity
• Operational progress in remediation and sewerage services sectors
• Director’s ongoing commitment and any changes in management or ownership structure