BARTLETT ENGINEERING LTD

Executive Summary

Bartlett Engineering Ltd shows early-stage growth with increased fixed assets and net equity but faces significant short-term liquidity challenges due to elevated current liabilities exceeding current assets. While the company’s financial position is stable on a net asset basis, the negative working capital necessitates cautious credit extension with conditions. Ongoing monitoring of cash flow and liquidity metrics is critical to ensure continued creditworthiness.

BARTLETT ENGINEERING LTD - Analysis Report

Company Number: 13052415

Analysis Date: 2025-07-20 13:00 UTC

Credit Opinion:
CONDITIONAL APPROVAL. Bartlett Engineering Ltd demonstrates a modest but positive equity base and asset growth since incorporation, indicating some financial development. However, the company’s current liabilities significantly exceed current assets, resulting in negative net current assets, which raises concerns about short-term liquidity and working capital management. The company is still in its early years with only one employee, and financial data is limited, so ongoing monitoring is essential. Approval is recommended with conditions including regular review of updated financials and cash flow performance.

Financial Strength:
The company’s net assets have increased from £2,976 at the end of 2021 to £5,107 at the end of 2023, reflecting growth in fixed assets from £2,150 to £9,043. This suggests investment in long-term resources, possibly equipment or technology aligned with their engineering and IT consultancy activities. However, current assets have dropped sharply from £1,014 to £391, while current liabilities have increased markedly from £188 to £4,327. This results in a negative net working capital position of -£3,936, which indicates potential pressure on short-term financial stability despite positive net equity.

Cash Flow Assessment:
The stark increase in current liabilities compared to current assets is a red flag for liquidity risk. Negative net current assets imply the company may face difficulties meeting immediate obligations without additional financing or cash inflows. With only one employee and micro-entity scale operations, cash flow appears constrained. No profit and loss or cash flow statement data is provided, so assumptions on operational cash generation cannot be verified. The business should be encouraged to maintain tight cash management and possibly secure short-term credit facilities to bridge liquidity gaps.

Monitoring Points:

• Quarterly updates on current assets and liabilities to assess liquidity trends.
• Cash flow statements to understand operational cash generation and outflows.
• Any increases in employee headcount or operational scale that might impact working capital needs.
• Changes in trade creditors and debtor days to evaluate payment cycle management.
• Director’s commentary on business outlook and plans for managing liabilities.