EUXTON SITE ENGINEERING LTD

Executive Summary

Euxton Site Engineering Ltd maintains a robust micro-entity balance sheet with low liabilities and strong working capital, supporting its ability to service credit facilities. The company is small-scale but compliant, with stable financials and good liquidity. Credit approval is recommended with limits appropriate to its size and ongoing monitoring of cash flow and operational developments.

EUXTON SITE ENGINEERING LTD - Analysis Report

Company Number: 12746528

Analysis Date: 2025-07-20 13:52 UTC

1. Credit Opinion: APPROVE
   Euxton Site Engineering Ltd demonstrates a stable financial position with positive net current assets and net assets as of the latest accounts (January 2024). The company is small-scale (Micro category) with minimal liabilities and no overdue filings, indicating good compliance and operational discipline. The low level of creditors falling due within one year (£680) relative to current assets (£14,823) shows strong short-term liquidity. The director has maintained the business since incorporation in 2020 without signs of distress or adverse financial issues. Given these factors, the company appears capable of servicing modest credit facilities. However, the limited scale and lack of detailed profit and loss data suggest a cautious approach for larger exposures, recommending approval with limits aligned to business size and cash flow.

2. Financial Strength:
   The balance sheet at 31 January 2024 reports total net assets of £14,143, with current assets of £14,823 against current liabilities of only £680. This indicates a solid working capital position and no reliance on short-term borrowing. Share capital is nominal (£1), typical for a micro private limited company. The company has no fixed assets or long-term liabilities reported, simplifying the asset base and risk profile. The slight decrease in net assets compared to the prior year (£14,473 in 2023) is immaterial and does not indicate deterioration. Overall, the financial structure is sound for the company’s size and industry.

3. Cash Flow Assessment:
   Current assets mainly consist of cash or equivalents given the small creditor amount and no inventory details, supporting liquidity. The net current assets of approximately £14k provide sufficient buffer to cover short-term obligations. The presence of only one employee (the director) keeps operating expenses low, which should help maintain positive cash flows. Although a profit and loss statement is not available, the working capital position and minimal liabilities suggest adequate liquidity to meet ongoing commitments and repay credit lines on time.

4. Monitoring Points:

• Track any significant changes in current liabilities or creditor amounts, which could strain liquidity.
• Review incoming turnover and profit data as soon as available to confirm cash generation capacity.
• Monitor director’s conduct and any changes in management or ownership that may impact governance.
• Watch for any overdue filings or compliance issues that could signal operational difficulties.
• Assess sector-specific risks in “Other engineering activities” especially linked to economic cycles or client concentration.