CARCHRIE ENGINEERING LTD

Executive Summary

CARCHRIE ENGINEERING LTD is a micro-entity with minimal financial substance and no operational scale, making it unsuitable for credit approval at present. Its balance sheet and liquidity are negligible, and no meaningful cash flow generation is apparent. Close monitoring of future financial performance and structural changes is essential before reconsidering credit exposure.

CARCHRIE ENGINEERING LTD - Analysis Report

Company Number: SC706670

Analysis Date: 2025-07-20 15:07 UTC

1. Credit Opinion: DECLINE
   CARCHRIE ENGINEERING LTD is a micro-entity with extremely limited financial resources, evidenced by net assets of only £514 as of 31 August 2024, and no fixed assets or employees. The company is relatively new (incorporated in 2021) and shows minimal financial activity or scale. The balance sheet strength and financial capacity are insufficient to support any meaningful borrowing or credit exposure at this time. The absence of an operating history beyond nominal asset holdings raises substantial concerns around the ability to generate cash flows to service debt or meet commercial obligations.

2. Financial Strength:
   The company’s balance sheet is minimalistic with total net assets of £514, all current assets, and no liabilities recorded. There are no fixed assets or employees, indicating a lack of operational scale or investment in productive capacity. Shareholders’ funds mirror the net assets, reflecting limited capital injection or retained earnings. The financial profile indicates a start-up or dormant status rather than a going concern with operational resilience.

3. Cash Flow Assessment:
   There is no cash flow data available, but the nominal current assets (~£514) suggest extremely limited liquidity. The company holds no working capital beyond this nominal amount and has no recorded current liabilities, implying no short-term obligations. However, the absence of trading activity or material assets signals poor cash generation capability and limited buffer to meet unexpected expenses or debt servicing.

4. Monitoring Points:

• Monitor future filings for evidence of revenue generation, increase in current assets, or capital injection.
• Watch for changes in working capital and net assets indicating operational growth or deterioration.
• Observe the appointment of additional directors or employees that might signal business expansion.
• Review director conduct and related party transactions due to the company’s complete control by a single individual.