AP ENGINEERING CONSULTANCY SERVICES LTD

Executive Summary

AP Engineering Consultancy Services Ltd, a recently incorporated micro private company, shows a stable financial position with positive liquidity and solvency at its first year-end. While the director loans form a significant portion of current liabilities, no immediate regulatory or compliance concerns are evident. Further due diligence should focus on cash flow sustainability and director loan arrangements to confirm operational and financial stability.

AP ENGINEERING CONSULTANCY SERVICES LTD - Analysis Report

Company Number: 15075559

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

1. Risk Rating: LOW

Justification: The company, AP Engineering Consultancy Services Ltd, has recently incorporated in August 2023 and presents a modest but positive financial position at its first year-end (August 2024). It shows net current assets and positive shareholders’ funds, with no overdue filings or regulatory issues evident. The director owns a controlling interest and remains active, which supports governance stability. The company benefits from a clean compliance record and sound liquidity as of the reporting date.

2. Key Concerns:

• Reliance on Director Loans: £44,442 of current liabilities are loans from directors, which may pose refinancing or repayment risk if the company’s cash flow deteriorates.
• Limited Operating History: With just over one year of trading, the company lacks a long financial track record to demonstrate operational resilience or profitability trends.
• Small Scale and Limited Resources: The company is micro-sized with only 2 employees and minimal fixed assets, which may constrain growth potential and operational flexibility.

3. Positive Indicators:

• Positive Net Current Assets (£12,064) and Net Assets (£14,975) indicate the company is solvent and able to meet short-term obligations.
• Healthy cash balance (£101,312) relative to current liabilities (£89,248), supporting liquidity.
• No overdue accounts or confirmation statement filings, demonstrating regulatory compliance.
• Director control and shareholding alignment may facilitate swift decision-making.

4. Due Diligence Notes:

• Confirm the terms and conditions of the director loans, including repayment schedules and interest, to assess refinancing risk.
• Review operational cash flow trends and client contracts to evaluate business sustainability and revenue visibility.
• Investigate the company’s business model, competitive positioning, and pipeline in the engineering consultancy sector to understand growth prospects.
• Verify if there are any contingent liabilities or off-balance sheet risks not disclosed in the accounts.
• Assess the adequacy of insurance and compliance with industry regulations given the technical nature of services.