IMPERIUM AVIATION SERVICES LTD

Executive Summary

Imperium Aviation Services Ltd shows a strong liquidity position and healthy net assets, supported by cash and low current liabilities. The company is financially stable but relatively young and small, with reliance on director-related loans posing some credit risk. Conditional credit approval is recommended, with close monitoring of debtor collections and related-party exposure.

IMPERIUM AVIATION SERVICES LTD - Analysis Report

Company Number: 13186290

Analysis Date: 2025-07-29 16:27 UTC

1. Credit Opinion: APPROVE with conditions.
   Imperium Aviation Services Ltd demonstrates solid working capital and positive net assets, indicating good short-term liquidity and a stable financial position. However, the company is relatively young (incorporated 2021) and has a modest scale with only two employees. The directors have provided loans to the company, which could indicate reliance on related-party funding. While there is no indication of financial distress, lending should include monitoring of debtor collections and related-party loan repayment. Overall, the credit risk appears manageable, but given limited operational history and related-party exposure, credit approval should be conditional on ongoing financial updates and no material deterioration in liquidity or debtor quality.

2. Financial Strength:
   The balance sheet shows net assets of £709,671 as of 28 February 2025, down from £856,794 the prior year. The company holds minimal fixed assets (£946), so net assets mainly represent working capital. Current assets of £722,834 (cash £470,255, debtors £252,579) exceed current liabilities of £14,109, resulting in a strong net current asset position of £708,725. Shareholders’ funds match net assets, reflecting no long-term debt. The reduction in debtors and cash since the prior year may warrant review, but the company remains well-capitalized for its size.

3. Cash Flow Assessment:
   Cash balances remain healthy at £470k, providing good liquidity for operations and short-term obligations. The company has a low level of creditors (£14k), which further supports liquidity. Debtors have decreased by about £130k compared to the prior year, improving cash conversion potential. However, a significant portion of debtors (£252k) includes loans from related-party companies controlled by directors, which could present collection risks if those entities face financial difficulties. Working capital management currently appears strong, but monitoring related-party loan repayment terms is important.

4. Monitoring Points:

• Debtor quality and timely collections, particularly related-party loans from companies owned by the directors.
• Maintenance of cash reserves and liquidity to cover current liabilities and operational needs.
• Profitability trends and cash flow generation going forward, given the slight decline in net assets.
• Any changes in director involvement or related-party transactions that may affect financial stability.
• Timely filing of accounts and confirmation statements, which currently are up to date.