DELTA ADVANCED ENGINEERING LTD

Executive Summary

Delta Advanced Engineering Ltd is in a financially distressed position with negative net assets and very limited current assets against significant liabilities. The company’s liquidity and operational capacity are insufficient to support credit facilities at this stage. Approval of credit is not recommended without substantial improvement in financial health or evidence of sustained funding support.

DELTA ADVANCED ENGINEERING LTD - Analysis Report

Company Number: 14499863

Analysis Date: 2025-07-20 15:57 UTC

1. Credit Opinion: DECLINE
   Delta Advanced Engineering Ltd currently demonstrates very weak creditworthiness. The company has net liabilities exceeding £53k and negative working capital, indicating an inability to meet short-term obligations without additional funding. Being a micro-entity incorporated in late 2022, it has minimal operating history and no employees, which raises concerns on its ability to generate sustainable cash flows. The significant creditor balances compared to negligible current assets imply liquidity stress. Without evidence of imminent capital injection or operational revenue growth, the risk of default is high.

2. Financial Strength:
   The balance sheet as of 30 November 2023 shows net current liabilities of approximately £58,685 and net assets of negative £53,297. The company holds almost no current assets (less than £1) against creditors due within a year of nearly £59k. There is a small portion of long-term creditors (£5,388), but these do not offset the overall negative equity position. This indicates the company is insolvent on a balance sheet basis and relies on external funding or director support to continue operations.

3. Cash Flow Assessment:
   With current assets close to zero, no employees, and significant current liabilities, the company's liquidity position is extremely weak. There is no evidence of cash reserves or receivables to cover operational needs or creditor payments. The negative working capital situation suggests acute short-term cash flow problems. Without immediate cash inflows or capital injection, the company is unlikely to meet its financial commitments as they fall due.

4. Monitoring Points:

• Track changes in net current assets and overall net assets in future filings to assess improvement or further deterioration.
• Monitor creditor levels and payment patterns to evaluate liquidity management.
• Review any capital injections or director loans disclosed in accounts or filings.
• Watch for operational developments such as revenue generation or hiring that may signal business viability.
• Confirm timely filing of accounts and confirmation statements to avoid regulatory complications.