FIRE RISK ENGINEERING LTD

Executive Summary

Fire Risk Engineering Ltd is a small but financially sound business with stable liquidity and modest equity growth. The company’s positive net current assets and cash position support its capacity to meet liabilities and service credit facilities. Careful monitoring of rising current liabilities and operating cash flow is recommended to maintain credit quality.

FIRE RISK ENGINEERING LTD - Analysis Report

Company Number: 13119944

Analysis Date: 2025-07-20 14:10 UTC

1. Credit Opinion: APPROVE
   Fire Risk Engineering Ltd demonstrates a stable financial position with positive net current assets and net assets, indicating the company can meet its short-term liabilities. The company has maintained liquidity consistently over the last three years and shows modest retained earnings growth. Directors have sound control and oversight with no adverse records. The firm’s small size and limited assets suggest credit facilities should be moderate and carefully monitored, but current evidence supports credit approval.

2. Financial Strength:
   The company holds net assets of £10,639 as of January 2024, up from £9,724 in the prior year, reflecting a slight strengthening in equity. There are no fixed assets recorded, which aligns with a service-oriented business in business support activities (SIC 82990). Current liabilities have increased to £4,710 but remain well covered by current assets (£15,349), yielding healthy net working capital of £10,639. Share capital is minimal (£2), typical for a small private company. Overall, the balance sheet is simple but sound with no long-term debt.

3. Cash Flow Assessment:
   Cash balances have increased from £11,332 to £15,349 over the year, indicating positive cash generation or capital injections. Absence of debtors suggests tight credit control or prepayment terms with customers, which reduces credit risk. Current liabilities have increased but remain manageable relative to cash holdings. The company’s working capital position is robust, suggesting sufficient liquidity to meet operating needs and short-term obligations.

4. Monitoring Points:

• Track changes in current liabilities, particularly “other creditors,” which increased significantly and may reflect payables or accrued expenses.
• Monitor cash flow trends closely due to limited asset base and small equity buffer.
• Watch for any material changes in turnover or profitability (not disclosed here) as the company is small and vulnerable to market fluctuations.
• Ensure prompt filing of accounts and confirmation statements continues to avoid compliance risks.
• Observe any increase in director loans or external financing which could indicate cash flow stress.