BECLA ENGINEERING LTD

Executive Summary

BECLA Engineering Ltd demonstrates a stable and growing financial position typical for a micro-entity early in its lifecycle, with healthy liquidity and positive equity growth. Timely statutory compliance and stable management underpin this solid foundation. To sustain and enhance financial wellness, the company should focus on maintaining working capital, planning for growth, and strengthening internal financial controls.

BECLA ENGINEERING LTD - Analysis Report

Company Number: 14357088

Analysis Date: 2025-07-29 12:26 UTC

Financial Health Assessment Report for BECLA ENGINEERING LTD
Incorporated: September 14, 2022 | Account Reference Date: September 30 | Industry: Other Engineering Activities (SIC 71129) | Micro-entity

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1. Financial Health Score: B+

Explanation:
BECLA Engineering Ltd shows a solid financial position for a young micro-entity company, with positive net current assets and growing net assets over two years. The absence of overdue filings and stable shareholder funds reflect good compliance and governance. Minor caution is warranted due to limited scale and modest asset base typical of a micro company, but overall financial "vital signs" indicate a healthy and stable condition.

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2. Key Vital Signs

Metric	2024 (£)	2023 (£)	Interpretation
Current Assets	53,659	58,922	Healthy short-term resources; slight decrease but still ample liquidity.
Current Liabilities	25,402	32,103	Obligations due within one year are manageable and decreasing.
Net Current Assets (Working Capital)	28,257	26,819	Positive and increasing working capital suggests good short-term financial resilience.
Net Assets (Equity)	27,333	25,278	Growth in owner’s equity demonstrates retained earnings or capital injections, indicating business stability.
Employee Count	4	4	Stable workforce size supports consistent operational capacity.
Filing Status	Up to date	Up to date	Compliance with statutory filing deadlines reduces regulatory risk.

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3. Diagnosis: What the Financial Data Reveals

• Healthy Cash Flow and Liquidity: The company maintains a comfortable buffer between current assets and liabilities, indicating it can meet short-term debts without distress. This is akin to a patient having a stable heartbeat—no urgent liquidity concerns detected.

• Growing Equity Base: Incremental increase in net assets suggests the company is either retaining profits or receiving additional investment, reflecting financial “muscle” building over time.

• Operational Stability: Consistent employee numbers and unchanged director/secretary appointments imply stable management and operational continuity, important for ongoing business health.

• Micro-Entity Scale: As a micro company, the financial figures are modest, and the company will need to monitor growth carefully. This is like a young adult still developing—healthy but requiring nurturing and support for expansion.

• No Audit Requirement: Prepared under micro-entity provisions with exemption from audit, meaning financial statements are unaudited. While standard for the size, this requires trust in internal controls and management integrity.

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4. Recommendations: Actions to Enhance Financial Wellness

• Maintain Positive Working Capital: Continue to monitor and manage receivables, payables, and inventory tightly to preserve liquidity — akin to regular check-ups ensuring vital signs remain stable.

• Plan for Growth: Explore strategies to build fixed assets or diversify current assets to increase operational capacity—think of this as strength training to support future expansion.

• Strengthen Financial Controls: Although unaudited, implementing robust internal financial controls and periodic reviews will help detect any early warning signs of distress and support transparency.

• Monitor Cash Flow Forecasts: Prepare rolling cash flow forecasts to anticipate potential shortfalls or funding needs, ensuring the company remains financially “fit” in changing conditions.

• Engage with a Financial Advisor: Consider periodic financial health assessments to benchmark performance against the engineering sector and micro-entity peers, similar to seeking specialist advice for chronic health management.

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