AIIR ENVIRONMENTAL LTD

Executive Summary

AIIR Environmental Ltd demonstrates a stable initial financial position with positive net assets and working capital, supported by asset-backed financing. However, as a newly formed company with limited trading history and hire purchase debt, credit approval should be conditional on ongoing review of cash flow and debt servicing. Effective debtor management and operational profitability will be key to sustaining creditworthiness.

AIIR ENVIRONMENTAL LTD - Analysis Report

Company Number: 14720561

Analysis Date: 2025-07-20 16:28 UTC

1. Credit Opinion: CONDITIONAL APPROVAL
   AIIR Environmental Ltd is a newly incorporated entity (March 2023) with its first set of accounts filed timely, showing a positive net asset position (£248,726) and net current assets of £227,887. The company operates in a niche business support service segment. Although it has no profit and loss details disclosed, the balance sheet indicates a solid working capital position. However, the company relies on hire purchase loans (£156,487 total) primarily for fixed assets, which could pressure cash flows. Given the limited trading history and some financial leverage, credit approval should be conditional, requiring ongoing monitoring of trading performance and debt servicing ability.

2. Financial Strength:

• Fixed assets stand at £193,477 with related hire purchase liabilities (£156,487 total), implying asset-backed financing but also a leverage consideration.
• Current assets (£598,117) comfortably cover current liabilities (£370,230) yielding positive net current assets (£227,887), indicating good short-term liquidity.
• Net assets of £248,726 reflect retained earnings and equity, suggesting initial capitalisation is adequate.
• Share capital is minimal (£100), but shareholders’ funds include significant profit and loss reserves (£248,626), implying accumulated profits or capital contributions.
• No overdue filings or statutory concerns noted.

3. Cash Flow Assessment:

• Cash at bank of £137,931 is moderate relative to current liabilities, indicating reasonable liquidity but not excessive cash buffer.
• Trade debtors (£439,940) represent a large portion of current assets, so effective debtor management is critical for maintaining cash flow.
• Hire purchase loans require scheduled repayments, impacting operating cash flow; regular servicing must be confirmed.
• No explicit profit and loss data provided, so cash generation from operations is uncertain at this stage.
• The company has 5 employees, suggesting a small but active workforce, which may require ongoing operational cash outflows.

4. Monitoring Points:

• Track timely repayment of hire purchase obligations to avoid asset repossession risk.
• Monitor debtor ageing and collection efficiency to ensure funds convert to cash promptly.
• Review profit and loss accounts when filed to assess profitability and operational cash flow generation.
• Watch for any increases in operating lease commitments or new liabilities that may strain liquidity.
• Keep an eye on directors’ conduct and ownership structure changes for governance stability.