BILLET WORLD ENGINEERING LTD

Executive Summary

Billet World Engineering Ltd displays a high risk profile primarily due to a pronounced liquidity shortfall and minimal operational scale as evidenced by zero employees and limited current assets. While regulatory compliance is maintained and fixed assets offer some value, the company’s financial stability and operational sustainability remain key concerns requiring further detailed review.

BILLET WORLD ENGINEERING LTD - Analysis Report

Company Number: 13679718

Analysis Date: 2025-07-29 20:32 UTC

1. Risk Rating: HIGH

Justification: The company exhibits very limited current assets (£850) against substantial current liabilities (£55,936) resulting in a large negative net working capital position (-£55,086). Although net assets remain positive (£2,362) due to fixed assets, the erosion from the previous year’s positive net assets (£4,336) indicates financial strain. The absence of any employees and the micro-entity size restrict operational scale and resilience. The company’s short operating history since incorporation in late 2021 also adds to uncertainty in sustainability.

2. Key Concerns:

• Liquidity risk is significant given current liabilities far exceed current assets, implying potential difficulties in meeting short-term obligations.
• Operational viability is questionable due to zero employees and minimal current assets, raising doubts about ongoing business activity and revenue generation.
• Financial stability is weak with diminishing net assets and thin equity base, which may impair the company’s ability to absorb shocks or invest in growth.

3. Positive Indicators:

• The company is compliant with filing requirements for accounts and confirmation statements, indicating good regulatory adherence.
• Fixed assets provide some tangible value on the balance sheet, which could have recoverable worth in liquidation.
• Control is clearly consolidated under a single director and shareholder, potentially allowing for streamlined decision-making.

4. Due Diligence Notes:

• Investigate the nature and valuation of fixed assets to assess their realizable value.
• Review cash flow statements or management accounts (not provided) to better understand liquidity management and operational cash generation.
• Clarify the business model and current trading status given zero employees and minimal current assets.
• Confirm if there are any contingent liabilities or off-balance sheet obligations.
• Examine director’s plans or intentions to improve financial health or restructure liabilities.