BHAMRA ENGINEERING SERVICES LTD

Executive Summary

BHAMRA ENGINEERING SERVICES LTD demonstrates a sound financial foundation typical for a new micro-entity, with healthy liquidity and positive net assets. While the company is not yet generating significant operational data or profits, it currently shows no signs of distress. Careful management of debt and equity will be key to sustaining financial wellness as the business grows.

BHAMRA ENGINEERING SERVICES LTD - Analysis Report

Company Number: 14838194

Analysis Date: 2025-07-29 16:04 UTC

Financial Health Assessment for BHAMRA ENGINEERING SERVICES LTD

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1. Financial Health Score: B

Explanation:
The company shows a generally healthy financial position for a start-up micro-entity with positive net assets and net current assets, indicating working capital sufficiency. However, the presence of long-term liabilities and relatively low equity compared to liabilities suggests some caution. The absence of revenue and profit figures limits the assessment on operational performance, so a "B" grade reflects solid balance sheet health but early-stage risk.

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2. Key Vital Signs

Metric	Value (£)	Interpretation
Fixed Assets	240	Minimal investment in long-term assets, typical for a new micro company.
Current Assets	7,128	Healthy short-term asset base, likely includes cash and receivables.
Current Liabilities	1,272	Debts due within one year; manageable given current assets.
Net Current Assets	5,856	Strong working capital indicating good short-term liquidity ("healthy cash flow cushion").
Creditors > 1 year (Long-term liabilities)	3,225	Moderate long-term obligations; requires monitoring to ensure repayment capacity.
Net Assets (Equity)	2,871	Positive equity, but relatively low, reflecting early stage capitalisation.
Shareholders Funds	2,871	Capital provided by owner; sole director and 100% shareholder, consolidating control.

• Liquidity Position: The net current assets of £5,856 show the company has enough short-term assets to cover current debts comfortably, indicating no immediate liquidity distress.
• Leverage: Long-term creditors of £3,225 suggest some borrowing or deferred payments; this is a symptom of moderate financial leverage, which is common in start-ups but should be managed.
• Equity Cushion: The net assets figure of £2,871 is positive but modest, implying the company has a small capital buffer against losses or unforeseen expenses.

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3. Diagnosis

The financial "vital signs" suggest BHAMRA ENGINEERING SERVICES LTD is in a stable but early stage of financial health. The company exhibits "healthy cash flow" through positive net current assets, indicating capability to meet short-term obligations without distress. The presence of long-term liabilities is a symptom of leveraging to fund operations or initial setup costs, which is not unusual for a business under one year old.

The company’s balance sheet reflects a nascent operation with minimal fixed assets and no employees reported, consistent with a start-up phase focused on engineering consultancy services. The sole director and majority shareholder structure centralizes control but also concentrates risk.

No indications of financial distress are observed, but the limited financial history and absence of profit and loss data mean that operational performance and profitability cannot yet be assessed. The company is not overdue on filings, which is a positive sign of compliance and governance.

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4. Recommendations

• Monitor Debt Levels: Keep a close eye on the long-term liabilities to ensure they do not become a burden as the business grows. Aim to reduce or restructure debt if possible to improve financial flexibility.
• Build Equity Base: Consider injecting additional capital or retaining early profits to strengthen shareholder funds and provide a larger buffer against operational risks.
• Generate Revenue and Profit: Since no employees and minimal assets are reported, focus on developing income streams and controlling costs to move from asset accumulation to profitability.
• Maintain Liquidity Discipline: Continue managing working capital prudently to ensure healthy cash flow, especially as the business scales or takes on more projects.
• Prepare for Growth: As the company moves beyond the start-up phase, plan investments in assets and staff carefully to avoid overextension.
• Compliance and Reporting: Maintain timely filing of accounts and confirmation statements to avoid penalties and preserve corporate reputation.

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