CONSCIOUS ENGINEERING DESIGN LIMITED

Executive Summary

Conscious Engineering Design Limited is a small, active engineering consultancy with limited financial resources and declining net assets. While currently able to meet short-term liabilities, its narrow liquidity margin and reduced equity base warrant cautious credit extension and ongoing financial monitoring. Conditional approval is recommended with focus on cash flow and balance sheet stability in future periods.

CONSCIOUS ENGINEERING DESIGN LIMITED - Analysis Report

Company Number: 12797262

Analysis Date: 2025-07-20 17:27 UTC

1. Credit Opinion:
   CONSCIOUS ENGINEERING DESIGN LIMITED is recommended for a CONDITIONAL credit approval. The company is active, with no overdue filings and a clean status. However, the micro-entity size and recent declining net assets raise caution. The company has modest net assets and limited fixed assets, indicating a small scale and limited capital buffer. The net assets decreased significantly from £10,150 in 2023 to £3,109 in 2024, signaling a weakening financial position that requires close monitoring before extending larger credit facilities.

2. Financial Strength:
   The company exhibits a very small fixed asset base (£467) and a low level of shareholders’ funds (£3,109 as of 2024). Its net current assets have shrunk from £9,454 in 2023 to £2,642 in 2024, reflecting a tight working capital position. The decline in net assets over the last year suggests reduced retained earnings or possible losses, though profits and losses are not disclosed in detail due to micro-entity reporting exemptions. The balance sheet shows positive net assets but at a low level, which limits the company’s capacity to absorb financial shocks.

3. Cash Flow Assessment:
   Current assets (£33,399) slightly exceed current liabilities (£30,899), indicating positive but narrow liquidity. Working capital is positive but decreased compared to the prior year. The company employs only 2 people, which suggests relatively low fixed operating expenses, potentially reducing liquidity strain. Nonetheless, the small margin between current assets and liabilities means cash flow could be vulnerable to delays in receivables or unexpected expenses. The lack of detailed profit and loss data restricts comprehensive cash flow analysis.

4. Monitoring Points:

• Monitor net assets and working capital trends closely to detect further deterioration.
• Review any profit and loss information when available to understand earning capacity and cash generation.
• Track receivables and payables aging to assess liquidity risk.
• Watch for any changes in director appointments or business activities that might affect credit risk.
• Confirm timely filing of accounts and confirmation statements to avoid regulatory penalties or compliance issues.