AARON & ERDI LIMITED

Executive Summary

AARON & ERDI LIMITED is an active micro-entity in the construction sector with timely filings and clear ownership. However, the marked decline in net assets and liquidity ratios raises medium solvency concerns. Further inquiry into financial trends and creditor commitments is recommended to ascertain ongoing operational viability.

AARON & ERDI LIMITED - Analysis Report

Company Number: 13992592

Analysis Date: 2025-07-20 18:15 UTC

1. Risk Rating: MEDIUM
   The company shows moderate solvency risk due to a material decline in net assets and limited liquidity, though it remains active with no overdue filings. The small scale and limited employee base suggest operational constraints.

2. Key Concerns:

• Significant reduction in net assets from £17,490 (2024) to £6,955 (2025) indicating potential weakening financial health.
• Current assets have decreased sharply from £16,288 to £5,515 while current liabilities remain constant at £25,440, highlighting potential liquidity strain.
• Reliance on a single director and shareholder with full control may pose governance risks and concentration of decision-making.

3. Positive Indicators:

• The company maintains compliance with filing deadlines, with no overdue accounts or confirmation statements reported.
• Business activities are well-defined within construction-related SIC codes, suggesting a focused operational scope.
• The company has no indication of insolvency proceedings or disqualification of directors.

4. Due Diligence Notes:

• Investigate reasons for the decline in current assets and net assets, including cash flow statements and creditor aging.
• Assess the nature and terms of long-term creditors of £25,440 to understand repayment obligations.
• Review operational plans and contracts to evaluate future revenue visibility and sustainability given the small employee base.
• Confirm there are no undisclosed related party transactions or contingent liabilities given the sole director/shareholder structure.