Company Number: 14705189

Analysis Date: 2025-07-29 19:51 UTC

1. Credit Opinion: CONDITIONAL APPROVAL
   Aztec Construction Services Ltd is a newly incorporated construction company with an active status and no history of financial distress. The company shows a positive net asset position and modest working capital surplus after its first accounting period. However, as a start-up operating for less than one year, it lacks a financial track record and profit history. The credit approval is conditional on ongoing monitoring of trading performance, cash flow stability, and timely filing of accounts and returns. The presence of experienced directors with relevant industry occupations (chartered builder, quantity surveyor) supports competent management.

2. Financial Strength:

• Net Assets: £316,447 (positive equity base)
• Current Assets: £2.32M, including £1.7M cash balance
• Current Liabilities: £2.0M, largely accruals (£1.475M) and trade creditors (£356k)
• Net Current Assets (Working Capital): £316,447, indicating a liquidity buffer
  The balance sheet reflects a sound liquidity position for a start-up, with cash covering most current liabilities. Shareholders’ funds match net assets, suggesting no hidden liabilities. The company is within the micro/small size category and benefits from the total exemption full accounts filing regime.

3. Cash Flow Assessment:
   The cash balance of £1.7M is strong relative to liabilities due within one year, indicating healthy short-term liquidity. Debtors of £609k suggest active trading and revenue inflows, but the large accruals figure (£1.475M) should be reviewed to understand payment timing risks. Loans from directors are negligible (£3.5k). Overall, cash flow appears sufficient to meet current obligations, but future credit exposure should be limited until consistent cash generation is demonstrated.

4. Monitoring Points:

• Profitability and cash flow trends in subsequent accounting periods
• Debtor aging and collection efficiency
• Changes in accruals and current liabilities levels
• Timely submission of statutory filings
• Any changes in ownership/control or director appointments
• Impact of market conditions on construction sector demand and contract wins