Company Number: OC434107

Analysis Date: 2025-07-29 18:18 UTC

1. Risk Rating: HIGH
   Justification: The company exhibits significant liquidity concerns with current liabilities exceeding current assets by £11,677 as of 30 November 2023, resulting in negative net current assets. This is a sharp deterioration from previous years, where net current assets were strongly positive. Additionally, substantial loans due to members (£645,244) are outstanding and current, indicating reliance on member funding rather than external finance. The business also shows a large investment in fixed assets (aircraft) that may not be readily liquidated to meet short-term obligations.

2. Key Concerns:

• Negative net current assets as of the latest accounts, indicating potential cash flow problems and inability to meet short-term liabilities without additional funding.
• Significant loans and debts due to members that are current liabilities, suggesting dependence on member financing which may not be sustainable long-term.
• Sharp decline in cash from £107,452 in 2022 to £7,049 in 2023, indicating a possible operational cash burn or liquidity strain.

3. Positive Indicators:

• The company maintains a large asset base in tangible fixed assets (primarily aircraft) valued at approximately £656,921, which could potentially be leveraged or sold to improve liquidity.
• No overdue statutory filings or confirmation statements, demonstrating compliance with regulatory requirements and good governance.
• A stable management team with two designated members since incorporation, providing operational continuity.

4. Due Diligence Notes:

• Investigate the nature and terms of the loans due to members, including repayment schedules and any security interests, to assess the true solvency position.
• Review cash flow statements and recent operational performance to understand the cause of cash depletion and negative working capital.
• Assess the marketability and liquidity of the fixed assets (aircraft) to determine how quickly they could be converted to cash if needed.
• Confirm the company’s revenue streams and profitability, as income statement data was not provided in the filings.
• Examine any contingent liabilities or off-balance sheet commitments not disclosed in the filings.