EHSAN ENGINEERING LTD

Executive Summary

EHSAN ENGINEERING LTD is a recently incorporated small private company with a positive opening financial position and no compliance issues. While current assets exceed liabilities, the company’s limited operational history and modest financial scale warrant monitoring, especially around cash flow and debtor quality. No immediate red flags are apparent, but further due diligence on operational sustainability is recommended.

EHSAN ENGINEERING LTD - Analysis Report

Company Number: 14525605

Analysis Date: 2025-07-20 15:18 UTC

1. Risk Rating: LOW

The company is newly incorporated (December 2022) and currently active with no overdue filings. Its financials for the first full year ending December 2023 show positive net current assets and net assets, indicating initial solvency and positive equity. There are no indications of financial distress or regulatory issues.

2. Key Concerns:

• Limited Operating History: As a company with just over one year of trading, the financial track record is minimal, limiting predictive power regarding future performance or stability.
• Modest Scale and Resources: The company has minimal fixed assets (none reported) and a small amount of working capital (£9,000 net current assets), indicating limited financial buffer.
• Taxation and Social Security Creditors: Current liabilities include £14,138 due for taxation and social security, which is a sizeable proportion relative to current assets and may pressure short-term liquidity if not managed carefully.

3. Positive Indicators:

• Positive Net Assets and Working Capital: Net assets and net current assets both stand at £9,000, demonstrating that current liabilities are covered by current assets.
• No Overdue Filings or Compliance Issues: Both accounts and confirmation statement are up to date, reflecting good governance and compliance.
• Single Controlling Shareholder with Full Control: Mr Khaled Ehsan holds 75-100% shares and voting rights, which may facilitate streamlined decision-making and responsiveness.

4. Due Diligence Notes:

• Cash Flow and Profitability Trends: Although profit for the period was £55,254, dividends of £46,255 were paid out, leaving modest retained earnings. Confirm ongoing cash flow sufficiency to cover liabilities and dividends.
• Client and Debtor Quality: Review the nature and collectability of the £13,416 trade debtors to assess liquidity risk.
• Business Model and Market Position: Understand the company’s operational scope under SIC 82990 (other business support services) and growth prospects.
• Director Background Check: Verify that the sole director, Mr Khaled Ehsan, has a clean record with no disqualifications or regulatory sanctions.