MACH AERO LIMITED

Executive Summary

Mach Aero Limited is a very early-stage private limited company showing clear signs of financial distress with negative working capital and equity. While it remains compliant with filing obligations and has straightforward ownership, its current financial position indicates significant solvency and liquidity risks. Further investigation into operational viability, funding plans, and detailed financial performance is essential before considering investment.

MACH AERO LIMITED - Analysis Report

Company Number: 13301969

Analysis Date: 2025-07-20 19:13 UTC

1. Risk Rating: HIGH
   The company exhibits significant solvency and liquidity risks due to persistent negative net current assets and shareholders' funds, indicating an inability to meet short-term obligations from available liquid assets.

2. Key Concerns:

• Negative Working Capital: At 31 March 2024, net current liabilities stood at £2,814 against a cash balance of only £1,146, signaling an immediate liquidity shortfall.
• Negative Equity Position: Shareholders’ funds are negative (£-2,814), reflecting accumulated losses and potential insolvency risks if losses continue.
• Limited Financial Scale and Activity: With only £2 issued share capital, minimal cash, and one employee, the company appears to be at a very early or nascent stage with no substantial trading history or asset base to support operations.

3. Positive Indicators:

• Compliance with Filing Requirements: The company’s accounts and confirmation statements are up to date and not overdue, indicating good regulatory compliance.
• Clear Ownership and Governance: The company has a single controlling shareholder with clear directorship, which may facilitate streamlined decision-making.
• No Indication of Insolvency Proceedings: The company is active and not in liquidation, administration, or receivership.

4. Due Diligence Notes:

• Trading and Revenue Details: The accounts omit the profit and loss account, limiting insight into revenue generation and operating performance. Confirm actual trading activity and revenue trends.
• Cash Flow and Funding Plans: Investigate how the company plans to address the liquidity gap and negative equity, including potential capital injections or credit facilities.
• Nature of Liabilities: Clarify the composition and terms of the current liabilities (£3,960), including whether these are trade creditors, loans, or related-party debts, and their payment schedules.
• Business Model Viability: Given the SIC code “Other service activities not elsewhere classified,” assess the sustainability and growth prospects of the underlying business activities.
• Director and PSC Background Checks: Although no disqualifications are noted, further due diligence on the director’s track record and capacity to support the company financially may be prudent.