Company Number: 13878938

Analysis Date: 2025-07-20 13:33 UTC

1. Credit Opinion: APPROVE (Conditional)
   CG Engineering Management Services Limited is a micro private limited company incorporated in 2022 and currently active. The company shows a positive trajectory in net assets and net current assets, improving from £161 in 2023 to £7,276 in 2024. However, as a micro entity with a single director/shareholder and modest scale, it lacks breadth in financial robustness and operational scale. Approval for credit is warranted but should be conditional on monitoring cash flow and ensuring continued operational performance given the limited financial history and size.

2. Financial Strength:
   The latest accounts (year ended 31 Jan 2024) show fixed assets of £1,249 and current assets of £27,402 against current liabilities of £23,314, resulting in net current assets (working capital) of £7,588. Net assets stand at £7,276, a significant improvement from prior years where net assets were only £161. This indicates sensible capital management and an improving balance sheet. Share capital is minimal (£2), implying most equity is accumulated reserves or retained earnings. The company operates with low asset intensity, typical for engineering management consultancy.

3. Cash Flow Assessment:
   Current assets exceed current liabilities by a comfortable margin, suggesting adequate short-term liquidity to meet immediate obligations. The increase in current assets from £11,963 to £27,402 is positive, but reliance on a single director and small scale means cash flow could be volatile. No audit was performed, and the company benefits from micro-entity exemptions, so detailed cash flow statements are unavailable. Continued monitoring of working capital trends and receivables turnover is recommended.

4. Monitoring Points:

• Cash flow stability and receivables aging to ensure working capital does not deteriorate.
• Continued profitability and retention of earnings to build shareholder funds.
• Any significant changes in director or ownership structure as the company is tightly controlled by one individual.
• Timely filing of accounts and confirmation statements to avoid regulatory risk.
• Impact of market conditions on the engineering consultancy sector affecting revenue streams.