ENGINEERING IT SOLUTIONS LIMITED

Executive Summary

ENGINEERING IT SOLUTIONS LIMITED shows a marked improvement in financial position with solid net assets and liquidity as of the latest accounts. The company is compliant with filing requirements and is not under any insolvency threat. However, further clarification on the alignment of reported business activities and detailed financial performance is recommended to fully assess operational sustainability.

ENGINEERING IT SOLUTIONS LIMITED - Analysis Report

Company Number: 12453362

Analysis Date: 2025-07-29 21:13 UTC

1. Risk Rating: LOW
   Justification: The company demonstrates strong net asset growth and positive net current assets in the latest financial year, indicating improved solvency and liquidity. There are no overdue filings or regulatory compliance issues noted.

2. Key Concerns:

• Industry classification (SIC 25990) relates to fabricated metal products manufacturing; however, the director’s occupation is IT consultancy, which could indicate a potential mismatch in operational focus requiring clarification.
• Share capital remains minimal (£100), which may limit financial flexibility despite reported net assets being healthy.
• The company has a small employee base (4 employees), posing potential operational capacity constraints if growth accelerates.

3. Positive Indicators:

• Net assets have increased substantially from £123k in 2023 to £348k in 2024, reflecting a strong balance sheet improvement.
• Net current assets have turned positive (£181k) from a previous negative position (-£52k), suggesting enhanced liquidity and ability to meet short-term obligations.
• No overdue accounts or confirmation statements, indicating good compliance and governance practices.
• The company is not in liquidation or any insolvency process and remains active.

4. Due Diligence Notes:

• Confirm the nature of business activities to reconcile SIC code with actual operations, ensuring accurate risk assessment.
• Review the detailed components driving the significant increase in net assets and net current assets (e.g., asset revaluations, new investments, or retained earnings).
• Evaluate cash flow statements and income statements (not provided) to understand operational profitability and cash generation capacity.
• Assess director background and any related party transactions since the director is also the sole identified key individual.
• Verify any contingent liabilities or off-balance sheet risks not disclosed in micro-entity filings.