Company Number: 12842119

Analysis Date: 2025-07-19 12:22 UTC

1. Credit Opinion: DECLINE
   Airspace Advisory Ltd shows a persistent and significant negative net asset position worsening from -£176k in 2023 to -£352k in 2024. This indicates the company is currently insolvent on a balance sheet basis. The large current liabilities (£411k) far exceed current assets (£60k), resulting in a net current liability of -£352k. This weak liquidity and capital deficiency suggest the company is unable to comfortably meet short-term obligations or service additional debt without external support. There are no indications of profitability or cash flow improvements to reverse this trend. The company’s micro-entity status and zero employees hint at a small operational scale with limited financial resilience. Given these financials and absence of mitigating factors, credit extension is not advisable.

2. Financial Strength:
   The balance sheet reveals a deteriorating financial position over recent years. Net assets have declined substantially from a modest positive £7.8k in 2021 to a deep negative of -£352k in 2024, primarily due to increased current liabilities. There are no fixed assets reported, indicating limited tangible collateral. Share capital is nominal at £1. The company operates with negative working capital, signaling overreliance on short-term creditors or accrued expenses. Overall, the financial strength is very weak, characterized by solvency concerns and lack of equity buffer.

3. Cash Flow Assessment:
   Current assets mainly consist of £60k in short-term assets (likely receivables and cash), overshadowed by £411k of current liabilities due within a year. This mismatch implies liquidity strain and potential difficulties in meeting immediate cash obligations. The absence of employee costs suggests minimal operational expenses, but also limited revenue-generating capacity. Without positive cash flow generation or capital injection, the company risks default on payables. The accounts do not provide explicit cash flow statements, but the balance sheet alone flags significant liquidity risk.

4. Monitoring Points:

• Net current assets/liabilities trend: Watch for any improvement in working capital position to gauge liquidity recovery.
• Changes in shareholder funds: Positive capital injections or retained earnings could improve solvency.
• Filing of next accounts and confirmation statements on time to assess ongoing compliance and financial updates.
• Any changes in director appointments or ownership structure that may affect governance or financial support.
• Industry conditions for urban planning consultancy and impact on company revenue and cash flow.