Company Number: 13106160

Analysis Date: 2025-07-20 11:22 UTC

1. Credit Opinion: APPROVE with conditions
   Bastion UK Services Limited demonstrates a solid financial position with positive net assets and net current assets increasing year on year. The company has consistently maintained a strong cash balance relative to current liabilities, indicating good liquidity to meet short-term obligations. However, the business is small and relatively young (incorporated in 2020), with a single director controlling the company fully. Conditions should include ongoing monitoring of cash flows and debtor collections, particularly given the director's advances and credits with the company which could impact financial flexibility.

2. Financial Strength:
   The company’s net assets have grown from £120,734 in 2022 to £145,877 in 2023, reflecting retained earnings accumulation. Tangible fixed assets are modest (£11,183) and show a typical depreciation pattern. Current assets of £306,096 exceed current liabilities of £171,402 by a comfortable margin, with net current assets improving to £134,694. Shareholders’ funds equal net assets, indicating no long-term debt, which strengthens the balance sheet. The company operates with minimal leverage, which reduces financial risk.

3. Cash Flow Assessment:
   Cash on hand (£257,212) is substantial relative to current liabilities, signaling strong liquidity and an ability to meet immediate obligations. Debtors are stable but slightly reduced from previous years, suggesting reasonable collection practices. The working capital position is positive and improving, evidencing good short-term financial health. Director’s advances have decreased their outstanding balance to £10,693, reducing related party credit risk, but this remains a point to watch.

4. Monitoring Points:

• Monitor debtor aging and collection efficiency to ensure cash conversion remains strong.
• Watch the director’s loan account movements to avoid cash flow strain or conflicts of interest.
• Review profitability trends as the company files full accounts in future years since profit and loss details are currently exempted.
• Track tax payments and creditor balances, especially corporation tax which has increased, to prevent liquidity pressure.
• Observe any changes in business scale or diversification that could impact financial stability given the company’s small size and single director control.