H&K STRUCTURAL ENGINEERS LIMITED

Executive Summary

H&K Structural Engineers Limited is a micro-entity showing slight financial improvement but remains very small with limited resources. The recent departure of directors introduces governance risks. Credit approval should be conditional on updated management information and cash flow visibility. Close monitoring of liquidity and management continuity is recommended.

H&K STRUCTURAL ENGINEERS LIMITED - Analysis Report

Company Number: 13561542

Analysis Date: 2025-07-29 20:03 UTC

1. Credit Opinion: CONDITIONAL APPROVAL
   H&K Structural Engineers Limited shows modest net assets of £300 at 31 August 2024, up from £100 the previous year, indicating some improvement in its financial position. However, the company remains very small (micro-entity) with minimal current assets (£400) and limited equity. The absence of employees suggests the company may rely on directors or subcontractors, which could impact operational continuity. The directors recently resigned (October 2024), which raises governance and continuity concerns. Given the limited financial scale and recent management changes, credit approval should be conditional on obtaining further information about ongoing trading, cash flow projections, and confirmation of stable management.

2. Financial Strength:
   The balance sheet reflects a fragile financial position typical of a micro-entity start-up in the engineering design sector. Net current assets improved from £100 to £300, showing better short-term liquidity. Shareholders’ funds increased from £100 to £300, showing retained earnings or capital injection. The company holds no fixed assets and only minimal current assets (£400), with current liabilities at £100, indicating low leverage but also minimal financial resources. The small equity base limits the company’s ability to absorb unexpected losses or support growth without external funding.

3. Cash Flow Assessment:
   Working capital is positive (£300) but low in absolute terms. Current assets halved from £800 to £400, which could indicate a reduction in cash or receivables; this should be monitored closely. No employees are reported, so payroll obligations are minimal, reducing cash outflow risks. However, the lack of detailed profit and loss data restricts assessment of operational cash generation. The low asset base suggests limited collateral for lending and vulnerability to cash flow shocks.

4. Monitoring Points:

• Management stability: Given the resignation of both directors in late 2024, monitoring the appointment of new directors and their experience is critical.
• Cash flow trends: Obtain periodic cash flow forecasts to ensure liquidity is adequate to meet obligations.
• Trade receivables and payables: Monitor aging profiles to detect collection or payment delays.
• Business activity level: Verify ongoing contracts and revenue streams to assess sustainability.
• Capital structure: Watch for any capital injections or borrowings that may affect leverage.