AIROS DEVELOPMENTS LIMITED

Executive Summary

Airos Developments Limited is an early-stage micro business showing initial asset growth and a turnaround from negative to positive net assets. However, it currently operates with negative working capital and limited equity, indicating liquidity risk. Credit approval is recommended on a conditional basis with tight limits and active monitoring of cash flow and working capital improvements.

AIROS DEVELOPMENTS LIMITED - Analysis Report

Company Number: 14272255

Analysis Date: 2025-07-29 20:50 UTC

1. Credit Opinion: CONDITIONAL APPROVAL
   Airos Developments Limited is a very young micro-entity in the construction of domestic buildings sector, with a short trading history since incorporation in 2022. The company has grown its net assets from a negative £3,544 in 2023 to a positive £15,237 in 2024, indicating initial progress towards financial stability. However, the company currently reports negative net current assets (£-20,352), reflecting working capital pressure and potential liquidity constraints. Given the limited trading history, small scale, and current working capital deficit, credit facilities could be considered on a conditional basis with prudent limits and close monitoring.

2. Financial Strength
   The balance sheet shows modest fixed assets (£36,589) and low current assets (£45,749) against current liabilities of £66,101. The company’s net assets improved from negative to positive within one year, driven mainly by an increase in current assets (from £4,938 to £45,749) and reduction in fixed assets, which may reflect disposals or write-downs. Shareholders’ funds are positive but remain low at £15,237, indicating limited cushion to absorb operational shocks. The capital structure is equity-funded predominantly by the principal shareholder, Mr Benjamin James Beuzeval and associated entity Airos Group Ltd.

3. Cash Flow Assessment
   Current liabilities exceed current assets, resulting in a net current liability position. This suggests the company may face cash flow constraints in meeting short-term obligations without additional funding or improved receivables and inventory management. The lack of detailed profit and loss data limits assessment of operating cash flow generation, but the increase in current assets signals some improvement in liquidity. Working capital management and cash flow forecasting will be critical to ensure ongoing liquidity.

4. Monitoring Points

• Working capital trends: watch for improvement in net current assets and ability to meet short-term liabilities.
• Profitability and cash flow generation from trading: as the company grows, positive operating cash flow will be essential.
• Timely filing of accounts and confirmation statements (currently up to date).
• Continued support or capital injection from shareholders if liquidity tightens.
• Market conditions in the domestic construction sector, which can be cyclical and sensitive to economic downturns.
• Director conduct and governance, currently no adverse records noted.