RELIANT AIR LTD

Executive Summary

Reliant Air Ltd exhibits a solid financial footing with growing net assets, strong liquidity, and controlled liabilities. The company’s management demonstrates prudent financial stewardship, supporting approval for credit facilities. Ongoing monitoring should focus on hire purchase debt levels and receivables management to ensure sustained repayment capacity.

RELIANT AIR LTD - Analysis Report

Company Number: 14222250

Analysis Date: 2025-07-20 15:29 UTC

1. Credit Opinion: APPROVE
   Reliant Air Ltd, a private limited company incorporated in 2022, shows a stable financial position with improving net assets and positive working capital. The company is current with all statutory filings and demonstrates sound financial stewardship by maintaining adequate liquidity and managing hire purchase liabilities prudently. The directors have prepared forecasts supporting going concern, and no adverse director conduct or legal issues are evident. Given its modest leverage and growth in net assets, the company appears capable of servicing credit facilities.

2. Financial Strength:

• Net assets increased from £82,243 in 2023 to £98,769 in 2024, indicating growth in shareholder equity.
• Fixed assets grew to £83,710, reflecting investment in tangible assets aligned with business operations (plumbing, heating, and air-conditioning installation).
• Liabilities consist mainly of hire purchase contracts (£45,617 long-term, £19,277 short-term) and trade creditors, with total current liabilities of £95,918.
• The gearing level is moderate given the hire purchase debt but manageable relative to assets and equity.
• Retained earnings have increased, showing profitable operations or accumulated reserves.

3. Cash Flow Assessment:

• Cash at bank improved markedly from £44,792 to £74,638, enhancing liquidity.
• Current assets (£177,522) exceed current liabilities (£95,918), yielding net current assets of £81,604, a healthy working capital position.
• Trade debtors are well controlled, increasing slightly but proportionate to turnover growth.
• The small bank overdraft balance (£919) suggests minimal reliance on short-term borrowing.
• The company’s liquidity ratios and positive cash balance support its ability to meet short-term obligations and service debt.

4. Monitoring Points:

• Monitor the growth of hire purchase liabilities and ensure they remain proportionate to cash flow and asset base.
• Watch for any significant changes in debtor days or increases in overdue trade receivables that could impact cash flow.
• Keep track of profitability trends since income statement details are not publicly filed; sustained profits are critical for ongoing creditworthiness.
• Review future statutory filings to confirm continued compliance and absence of material adverse changes.
• Observe economic conditions impacting the plumbing and HVAC sector which could affect demand and payment patterns.