GPE ENGINEERS LTD

Executive Summary

GPE Engineers Ltd exhibits a low financial risk profile with positive net assets, adequate liquidity, and current compliance with statutory filings. Despite its small scale and dependence on director loans, the company maintains operational stability and transparent accounting practices. Further due diligence on director loans and revenue robustness is advisable to ensure continued financial health.

GPE ENGINEERS LTD - Analysis Report

Company Number: 14250457

Analysis Date: 2025-07-29 20:33 UTC

1. Risk Rating: LOW

Justification: GPE Engineers Ltd is a recently incorporated (2022) private limited company operating in plumbing, heating, air-conditioning, and electrical installation industries. The financial statements show a positive net asset position, low liabilities relative to assets, and no overdue filings. The company’s current assets exceed current liabilities, indicating adequate short-term liquidity. The absence of audit requirements and the small scale of operations suggest a low complexity profile, with no apparent regulatory compliance issues.

2. Key Concerns:

• Limited scale of operations: With only one employee and modest fixed assets (~£4.4k in motor vehicles), the business may be vulnerable to operational disruptions or scaling challenges.
• Loans from directors: The presence of £432 loans from directors within current liabilities warrants monitoring, as it may indicate reliance on director funding for working capital.
• Small debtor base (£636) and cash holdings (~£6.3k) imply low revenue turnover, which could constrain growth and resilience in adverse market conditions.

3. Positive Indicators:

• Net current assets increased from £3.4k in 2023 to £4.7k in 2024, demonstrating improved working capital management despite modest scale.
• Shareholders’ funds increased slightly year on year, reflecting retention of earnings and stable equity.
• No overdue accounts or confirmation statements; the company is compliant with statutory filing deadlines.
• Clear accounting policies consistent with FRS 102 Section 1A and no audit requirement, appropriate for a small company.
• The director has signed off on the accounts and there are no indications of governance issues or director disqualifications.

4. Due Diligence Notes:

• Verify the nature and terms of the director loans to assess any contingent liabilities or repayment risks.
• Investigate revenue streams and contract stability given the small employee base and asset profile.
• Review any related party transactions or commitments not disclosed in the accounts.
• Confirm ongoing compliance with health and safety regulations relevant to installation services.
• Consider cash flow forecasts and client concentration to evaluate operational sustainability.