EXQUISITE ENGINEERING LTD
Executive Summary
Exquisite Engineering Ltd is a micro-sized start-up with minimal financial history, showing a small positive working capital position but limited financial strength or asset backing. The company’s ability to service debt is unproven, requiring cautious credit exposure with conditions and ongoing monitoring. Early signs suggest operational viability, but the limited equity and tight liquidity warrant prudent oversight.
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This analysis is opinion only and should not be interpreted as financial advice.
EXQUISITE ENGINEERING LTD - Analysis Report
Credit Opinion: CONDITIONAL APPROVAL
Exquisite Engineering Ltd is a very recently incorporated company (October 2022) with limited financial history, reporting minimal assets and liabilities. It shows a positive net current asset position but only marginally (£365). The single director and 100% shareholder is a mechanical engineer, which suggests technical expertise but no evidence yet of financial scale or diversification. The company operates in vehicle maintenance and repair, a sector with moderate risk and competitive pressures. Given the early stage of operations and low financial buffers, credit facilities could be cautiously extended with conditions—such as regular financial updates, small initial limits, and monitoring of cash flow and contract wins.Financial Strength:
The balance sheet as of 31 October 2023 shows total current assets of £8,701 (all cash) and current liabilities of £8,336, resulting in net current assets of £365. There are no fixed assets. The company’s equity is minimal at £365, reflecting the initial capital and small retained earnings. The absence of tangible assets and the very lean capital base mean the company has limited collateral and financial resilience. The company falls within the micro entity category. The financial position indicates a start-up phase with tight working capital.Cash Flow Assessment:
Cash at hand of £8,701 exceeds short-term liabilities by a narrow margin, indicating just enough liquidity to meet immediate obligations. However, with only one employee (the director) and no debt facilities reported, the company’s cash flow depends entirely on operational inflows, which are not disclosed here. The lack of inventory or receivables suggests a service-based model with cash sales or rapid collections. Working capital is positive but minimal, highlighting vulnerability to any unexpected expenses or delays in payments from customers.Monitoring Points:
- Turnover growth and contract pipeline development to confirm revenue generation and cash inflows.
- Margins and profitability as turnover increases to assess sustainable operations.
- Liquidity trends including cash flow statements to detect any stress early.
- Changes in director or shareholding structure that might affect control or strategy.
- Timely filing of future accounts and confirmation statements to maintain compliance.
- Any build-up of creditor balances or late payments indicating cash flow issues.
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