AERO COUNSEL LTD

Executive Summary

AERO COUNSEL LTD exhibits robust financial health with significant growth in equity and assets, reflecting a stable and improving financial condition. The company enjoys positive liquidity and no immediate signs of distress, though operational scale is limited by the absence of employees. Strategic investment in human resources and ongoing financial monitoring will be key to sustaining and accelerating growth.

AERO COUNSEL LTD - Analysis Report

Company Number: 14146198

Analysis Date: 2025-07-29 20:53 UTC

Financial Health Assessment for AERO COUNSEL LTD (As of 31 March 2024)

---

1. Financial Health Score: B

Explanation:
AERO COUNSEL LTD shows solid improvement in its financial position over the latest year. With positive net current assets and a rising equity base, the company demonstrates healthy financial "vital signs." However, given the firm's micro size, absence of employees, and limited operational history (incorporated in 2022), there remains some uncertainty about scalability and long-term sustainability. The score "B" reflects a good state of health with room for growth and risk mitigation.

---

2. Key Vital Signs

Metric	2024 (Latest)	Interpretation
Fixed Assets	£106,993	Significant increase—suggests investment in long-term assets, a healthy sign of growth or capital investment.
Current Assets	£142,902	Increased working capital pool, indicating improved liquidity.
Current Liabilities	£82,886	Moderate short-term obligations; manageable given current assets.
Net Current Assets (Working Capital)	£60,016	Positive and growing, indicates ability to cover short-term debts comfortably.
Total Assets Less Current Liabilities	£167,009	Overall asset base after short-term liabilities, substantial increase from prior years.
Shareholders’ Funds (Equity)	£167,009	Equity has grown over sixfold from £26,759 in 2023, signaling retained earnings or capital injections.
Average Number of Employees	Nil	No employees, which may limit operational capacity and growth potential.

---

3. Diagnosis

AERO COUNSEL LTD is showing strong signs of financial vitality. The company's "heartbeat"—its liquidity and equity—has notably improved in the latest year. The substantial rise in fixed assets suggests capital investment, which can be a positive sign of strategic growth or asset acquisition. The positive net current assets indicate the company is not experiencing "cash flow distress" and has enough short-term resources to meet obligations.

However, the absence of employees may be a symptom of limited operational scale or reliance on contractors or directors, which could impact the company's ability to expand or service clients efficiently. The micro-entity status means the company benefits from simplified reporting but may face challenges in accessing larger financing or scaling operations quickly.

There are no indications of financial distress such as negative working capital, excessive liabilities, or declining equity. The company is active, compliant with filings, and stable in governance with clear control by two shareholders.

---

4. Recommendations

• Enhance Operational Capacity: Consider hiring or contracting skilled personnel to support growth and operational demands, reducing reliance on directors alone.
• Monitor Asset Utilization: Ensure that the increase in fixed assets is generating expected returns; avoid "over-investment" that could strain liquidity.
• Maintain Healthy Cash Flow: Continue monitoring working capital closely to avoid "symptoms" such as delayed payments or increasing liabilities.
• Plan for Growth: Develop strategic plans to transition beyond micro-entity thresholds if growth is desired, including diversifying revenue streams.
• Strengthen Financial Reporting: While audit exemption is allowed, consider periodic internal or external financial reviews to pre-empt risks and reassure stakeholders.
• Governance and Controls: Maintain clear decision-making processes among shareholders and directors to manage risks, especially given the concentrated ownership.

---