BOOK A CATERING ENGINEER LTD

Executive Summary

Book A Catering Engineer Ltd shows strong financial growth with increasing net assets and positive working capital, indicating low solvency and liquidity risk. The company remains compliant with filing requirements and benefits from relevant industry expertise among its directors. However, limited external audit scrutiny and material current liabilities warrant further due diligence on cash flows and governance changes following recent director resignation.

BOOK A CATERING ENGINEER LTD - Analysis Report

Company Number: 13117993

Analysis Date: 2025-07-20 14:11 UTC

1. Risk Rating: LOW
   The company demonstrates solid net asset growth and positive net current assets in recent years. There are no overdue filings, and it remains active with stable governance. The financials suggest the company can meet short-term and long-term obligations, indicating low solvency and liquidity risk.

2. Key Concerns:

• Moderate current liabilities relative to current assets may require ongoing monitoring to ensure liquidity is maintained, especially as the current liabilities are material (£81,722 vs. £120,749 current assets).
• The company is exempt from audit under micro-entity provisions, which limits external scrutiny and may mask underlying operational or financial issues.
• The resignation of one director (March 2025) could indicate minor governance changes to review, though no adverse implications are apparent.

3. Positive Indicators:

• Consistent net asset growth from £3,483 (2020) to £85,396 (2024) shows strong capital accumulation and business growth.
• Positive net current assets and increasing fixed assets indicate operational stability and investment in long-term resources.
• No overdue accounts or confirmation statements, which reflects good regulatory compliance.
• Presence of multiple directors with engineering background aligns well with the SIC classification of "Other engineering activities," suggesting relevant operational expertise.

4. Due Diligence Notes:

• Review detailed cash flow statements and profit & loss accounts (not provided) to confirm sustainable cash generation and profitability.
• Investigate the nature and terms of the current liabilities, particularly the portion falling due within one year, to assess liquidity risk more granularly.
• Assess the impact of the director resignation in March 2025 on company strategy and governance practices.
• Confirm the extent of related party transactions or contingent liabilities, if any, that could affect financial stability.
• Evaluate client base and contract pipeline given the company’s relatively young age (incorporated 2021) and micro-entity status.