AURUM JETS LTD

Executive Summary

Aurum Jets Ltd shows signs of financial strain with a drastic reduction in net assets and significant deferred income that could pressure future liquidity. While the company maintains regulatory compliance and positive short-term assets, its minimal operational base and capital erosion present high solvency risk. Further due diligence on deferred income details, profitability, and business sustainability is essential before considering investment.

AURUM JETS LTD - Analysis Report

Company Number: 14281707

Analysis Date: 2025-07-29 20:57 UTC

1. Risk Rating: HIGH

   The company's financial data indicates significant instability and potential solvency risk despite being active and compliant with filing requirements. The precipitous decline in net assets from £16,980 in 2023 to just £1,202 in 2024, combined with large accruals and deferred income nearly equal to current assets, raises concerns about the company's ability to meet its obligations.

2. Key Concerns:

   • Solvency and Capital Erosion: Net assets have sharply fallen from a positive £16,980 in 2023 to a marginal £1,202 in 2024, indicating a rapid depletion of equity capital.

   • High Deferred Income: Accruals and deferred income stand at approximately £139,739 in 2024, almost equal to current assets, which may indicate significant liabilities or income received in advance that could pressure future cash flows.

   • Minimal Operational Scale: The company has only one employee on average and reports no fixed assets, suggesting a very limited operational base and possible reliance on external resources or third-party suppliers, which may impact sustainability.

3. Positive Indicators:

   • Compliance and Timely Filings: Accounts and confirmation statements are up to date and filed on time, indicating good regulatory compliance and governance.

   • Positive Net Current Assets: Despite the low net asset figure, net current assets remain positive at £140,941, which implies short-term liquidity is currently adequate.

   • No Audit Requirement: As a micro-entity, the company benefits from simplified reporting, reducing administrative burden.

4. Due Diligence Notes:

   • Examine Deferred Income Composition: Investigate the nature and timing of the £139,739 deferred income to assess whether it represents a liability that will impact future cash flows.

   • Review Profit and Loss Details: Obtain detailed profit and loss accounts to understand causes of equity erosion and whether losses are operational or non-recurring.

   • Assess Business Model and Contracts: Given the SIC code (agents involved in sale of machinery, ships, aircraft), evaluate the company's client base, contracts, and revenue recognition policies to verify sustainability.

   • Confirm Director Background: Review the experience and track record of the sole director to gauge management capability.

   • Evaluate Cash Flow Forecasts: Request management cash flow projections to assess future liquidity and potential funding needs.