AERIAL IMAGE AND RECON LTD.

Executive Summary

AERIAL IMAGE AND RECON LTD. demonstrates ongoing financial distress with persistent negative net assets and working capital deficits, indicating weak creditworthiness and poor liquidity. Given the absence of employees and increasing current liabilities, the company lacks the financial resilience to service debt obligations reliably. The credit recommendation is to decline new credit facilities until significant improvements in capital structure and cash flow are evident.

AERIAL IMAGE AND RECON LTD. - Analysis Report

Company Number: 12787903

Analysis Date: 2025-07-19 12:21 UTC

1. Credit Opinion: DECLINE
   AERIAL IMAGE AND RECON LTD. presents a weak credit profile marked by persistent net liabilities and negative net current assets over the past four years. The company’s balance sheet shows increasing accumulated losses, with net liabilities growing from £-3,104 in 2020 to £-9,851 in 2024. Absence of employees and limited operating scale further reduce confidence in the company's ability to generate sufficient revenue to meet debt obligations. The negative working capital position indicates ongoing liquidity challenges, increasing the risk of default on short-term liabilities.

2. Financial Strength:
   The company is classified as a micro-entity with minimal fixed assets (£9,854 in 2024) and a very low level of current assets (£734). Current liabilities have doubled in one year from £10,075 in 2023 to £20,439 in 2024, resulting in a worsening net current liability position of £-19,705. Shareholders’ funds are negative and deteriorating, signaling an erosion of equity and an insolvent balance sheet from a net asset perspective. The absence of equity injection or retained earnings suggests poor financial stewardship or insufficient capital support.

3. Cash Flow Assessment:
   Current assets are insufficient to cover current liabilities, reflecting poor liquidity and negative working capital of nearly £20k. The company has no reported employees, implying low ongoing operational costs, but also limited operational activity, which may constrain cash inflows. Without evidence of external financing or positive cash generation, the company’s short-term liquidity position is precarious and may lead to difficulties in meeting creditor demands or funding day-to-day operations.

4. Monitoring Points:

• Monitor changes in current liabilities and efforts to reduce creditor balances.
• Watch for any capital injections or equity restructuring to improve net asset position.
• Track cash flow statements (if available) for signs of liquidity improvement.
• Observe any operational developments or revenue generation to support cash inflows.
• Monitor director’s adherence to filing deadlines and any changes in management or control.