CPR ENGINEERING LIMITED
Executive Summary
CPR ENGINEERING LIMITED is an active private limited company recently incorporated with very limited financial resources and no recorded employees or trading activity to date. While compliant with filing requirements, the company’s negligible net assets and concentrated control present significant solvency and operational risks. Further diligence is needed to assess business viability and funding plans before considering investment.
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This analysis is opinion only and should not be interpreted as financial advice.
CPR ENGINEERING LIMITED - Analysis Report
Risk Rating: HIGH
Given the extremely limited financial resources (net assets of only £33) and no recorded employees or trading activity, CPR ENGINEERING LIMITED currently presents a high risk profile. The company's financial position is minimal, raising concerns about its ability to meet obligations and sustain operations.Key Concerns:
- Minimal Financial Cushion: Net current assets and shareholders’ funds stand at just £33, indicating negligible working capital and very limited capacity to absorb any financial shocks or meet liabilities beyond the current minimal level.
- No Operational Activity: The accounts show zero employees and lack of detailed revenue or profit figures, suggesting the company may not have commenced substantive trading or revenue-generating activities.
- Single Director and Shareholder Control: The company is effectively controlled by one individual who holds 75-100% of shares and voting rights. This concentration of control may limit oversight and governance robustness.
- Positive Indicators:
- Compliance with Filing Requirements: The company has filed its accounts and confirmation statement on time, demonstrating adherence to statutory compliance and regulatory obligations.
- Clear Company Status and Address: Active status and valid registered office details provide a traceable corporate presence.
- Incorporation Recent but Up to Date: Established in late 2022 with timely filings for its first accounting period, indicating operational start-up discipline.
- Due Diligence Notes:
- Investigate Business Model and Trading Plans: Confirm whether the company is still in start-up phase, has secured contracts, or plans for generating revenue.
- Review Cash Flow and Funding Sources: Assess whether the company has access to external funding or owner loans beyond the minimal balance sheet figure.
- Director Background and Capacity: Given single director control, examine the director’s experience and any potential conflicts or related party transactions.
- Future Financial Projections: Request management accounts or forecasts to understand operational sustainability prospects.
- Verify No Undisclosed Liabilities: Ensure other contingent or off-balance sheet liabilities do not exist that could stress liquidity.
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