AIRBOURNE BUSINESS SUPPORT LIMITED
Executive Summary
Airbourne Business Support Limited presents a high-risk profile due to its negative net assets and current liabilities exceeding current assets as of March 2024, indicating solvency and liquidity concerns. While the company remains compliant with statutory filings and maintains stable debtor levels, reliance on director funding and accumulated losses warrant caution. Further inquiry into the director’s account, cash flow dynamics, and operational viability is recommended before considering investment.
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This analysis is opinion only and should not be interpreted as financial advice.
AIRBOURNE BUSINESS SUPPORT LIMITED - Analysis Report
Risk Rating: HIGH
The company exhibits a negative net asset position and net current liabilities as of the latest financial year, indicating solvency concerns. The increase in current liabilities and the negative shareholders’ funds raise significant risks regarding its ability to meet short-term obligations.Key Concerns:
- Negative Net Assets: The company’s net assets declined from positive £1,799 in 2023 to negative £1,669 in 2024, reflecting accumulated losses and potential insolvency risk.
- Deteriorating Working Capital: Net current assets moved from a positive £1,799 in 2023 to negative £1,669 in 2024, driven by increased current liabilities (£8,045 vs £5,154) and reduced cash balances. This signals liquidity strain.
- Director’s Account Creditors: A large creditor balance (£6,192) owed to the director indicates reliance on director funding to support operations, which can be a red flag if not sustainable or formalised.
- Positive Indicators:
- Compliance and Filing: The company is active, up to date with its statutory filings, and not overdue on accounts or confirmation statements, demonstrating regulatory compliance.
- Consistent Debtor Balances: Trade debtors remained stable at £5,487, suggesting some consistency in revenue receivables.
- Single Director with Full Control: Clear ownership and control by one individual may facilitate decisive management actions.
- Due Diligence Notes:
- Investigate the composition and terms of the director’s account balance to assess the nature of this creditor and repayment plans.
- Review detailed profit and loss accounts (not filed publicly) to understand the causes of accumulated losses and cash flow trends.
- Evaluate the company’s business model and contracts given the SIC code 82990 (other business support services) to assess operational sustainability and revenue stability.
- Confirm whether the company has access to additional funding or credit facilities to address liquidity challenges.
- Assess any contingent liabilities or off-balance sheet obligations not visible in the filleted accounts.
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