DAVE FOYER ENGINEERING LTD

Executive Summary

Dave Foyer Engineering Ltd is a financially stable micro enterprise with improving net assets and liquidity, supported by strong shareholder control and no compliance issues. The company demonstrates adequate working capital and cash flow to service credit obligations, making it suitable for credit approval. Ongoing monitoring should focus on receivables management and tax liabilities to maintain financial health.

DAVE FOYER ENGINEERING LTD - Analysis Report

Company Number: 13836906

Analysis Date: 2025-07-20 11:33 UTC

1. Credit Opinion: APPROVE Dave Foyer Engineering Ltd demonstrates sound financial health for its size and stage. The company has maintained positive net assets and net current assets, with a strong increase in liquidity year-on-year. The director has significant ownership and control, which supports consistent management oversight. No overdue filings or legal encumbrances are present, reducing compliance risk. The company’s ability to generate and retain cash supports reliable servicing of credit facilities.

2. Financial Strength: The balance sheet shows a solid financial position with net assets of £23,402 as at 31 January 2024, up from £13,943 the prior year, indicating growth. Fixed assets are minimal (£1,227) and mainly computer equipment, appropriate for an engineering consultancy. Current assets increased to £42,192 driven by cash and receivables growth. Current liabilities at £20,017 are manageable, with net current assets at £22,175 reflecting good working capital. Shareholders’ funds equal net assets, reflecting no external equity financing. The company is micro-sized and exempt from audit, which is typical for its scale.

3. Cash Flow Assessment: Cash holdings improved significantly to £30,751 from £17,726, indicating strong cash generation and/or capital injection. Trade debtors increased moderately, but remain within reasonable bounds relative to sales expectations, showing effective credit control. Current liabilities rose but remain covered by liquid assets, indicating the company can meet short-term obligations comfortably. The presence of a director’s loan account (£2,735) suggests some shareholder funding, but this is modest and not a concern. Overall liquidity ratios are healthy, supporting smooth operational cash flow.

4. Monitoring Points:

• Monitor growth in trade debtors relative to turnover to prevent credit risk buildup.
• Watch corporation tax and VAT liabilities in current liabilities for timely settlement to avoid penalties.
• Track cash conversion cycle and working capital trends to ensure ongoing liquidity.
• Assess any changes in director’s loan account or shareholder funding that might impact financial stability.
• Keep an eye on turnover and profitability trends in future filings to confirm sustainable business growth.