CALEX ENGINEERING SERVICES LIMITED

Executive Summary

Calex Engineering Services Limited demonstrates solvency and compliance with regulatory requirements but exhibits a concerning reduction in current assets and net assets in the latest financial year. This decline, coupled with changes in director’s loan balances and minimal cash reserves, elevates liquidity risk. Further due diligence on cash flow, debtor quality, and related party transactions is advised to confirm operational stability.

CALEX ENGINEERING SERVICES LIMITED - Analysis Report

Company Number: 12548680

Analysis Date: 2025-07-29 13:45 UTC

1. Risk Rating: MEDIUM
   The company shows a significant decrease in current assets and net assets in its latest financial year compared to prior years, indicating potential liquidity stress. However, it remains solvent with positive net assets and no overdue filings. The limited size and minimal fixed assets also imply a fragile operational base.

2. Key Concerns:

• Sharp decline in current assets and net assets from £249k and £48.9k in 2023 to £18.7k and £13.8k in 2024, primarily due to a reduction in debtors and cash to zero, which may stress short-term liquidity.
• Director's loan account swung from a £190k creditor balance in 2023 to zero in 2024, suggesting a substantial repayment or write-off that requires explanation.
• Low cash on hand and minimal tangible fixed assets (£2,478) limit operational flexibility and ability to withstand financial shocks.

3. Positive Indicators:

• The company remains active, compliant with filing deadlines, and has no overdue accounts or confirmation statements, indicating good regulatory compliance.
• Positive net current assets (£11,322) and shareholders’ funds confirm solvency at the balance sheet date.
• Stable small workforce (2 employees) suggests controlled operational scale consistent with company size.

4. Due Diligence Notes:

• Investigate reason behind the drastic reduction in debtors and cash balances between 2023 and 2024 to assess whether this reflects improved collections, write-offs, or loss of business.
• Clarify the changes in the director’s loan account and their impact on company finances and related party transactions.
• Review turnover and profitability trends (not disclosed here) to evaluate ongoing operational viability.
• Confirm absence of contingent liabilities or off-balance-sheet obligations that could impair financial position.
• Verify stability of client base and contract pipeline to assess sustainability of revenue streams.