ENGINEERING TUTORS LTD

Executive Summary

ENGINEERING TUTORS LTD is a newly formed micro-entity with a solid initial balance sheet reflecting positive net assets and working capital. The owner-managed structure and minimal liabilities reduce immediate credit risk, supporting an initial credit approval with low exposure limits. Ongoing monitoring of operational scale, cash flows, and compliance will be critical as the company develops its business activities.

ENGINEERING TUTORS LTD - Analysis Report

Company Number: 14675564

Analysis Date: 2025-07-20 15:58 UTC

1. Credit Opinion: APPROVE (Low Risk – Start-Up with Positive Net Assets) ENGINEERING TUTORS LTD is a newly incorporated micro-entity (since Feb 2023) operating in educational support services. The first set of filed accounts shows a positive net asset position of £3,443 with net current assets of £3,433 and no employees, indicating limited operational scale so far but prudent management of resources. The business is owned and managed by a single director with full control, which simplifies governance but also concentrates risk. Given the small size, lack of trading history beyond inception, and no audit requirement, credit exposure should remain modest and monitored closely. However, there is no indication of financial distress or liabilities beyond short-term creditors, supporting initial credit approval.

2. Financial Strength:

• Total assets less current liabilities stand at £3,443, wholly composed of current assets minus current liabilities plus minimal fixed assets.
• Current assets of £4,241 (likely cash or receivables) comfortably cover current liabilities of £808, yielding a strong working capital ratio (~5.25).
• Shareholders’ funds equal net assets, reflecting no debt financing to date.
• The balance sheet reflects a sound but embryonic financial position typical for a start-up micro entity.

3. Cash Flow Assessment:

• Current assets exceeding current liabilities by a significant margin indicates good short-term liquidity.
• No employees or significant operating expenses reported yet suggests very low cash burn.
• The company should maintain positive cash flow given low liabilities and operational scale.
• Monitoring future cash flow statements and debtor collections will be important as business activity grows.

4. Monitoring Points:

• Business growth and revenue generation: Monitor turnover and profitability in forthcoming accounts.
• Working capital trends: Watch for any increase in current liabilities or decrease in current assets that could strain liquidity.
• Director’s financial conduct and governance: As sole director and shareholder, any changes in management or control should be flagged.
• Timeliness and completeness of statutory filings to ensure compliance and transparency.
• Expansion in employee numbers or fixed assets which may impact credit risk profile.