IMAGINEERING ENGINEERING LTD

Executive Summary

Imagineering Engineering Ltd is a micro company in early development with limited financial strength and very tight liquidity. The company can meet current liabilities but has minimal financial buffer and no operating employees, indicating reliance on director support or new business inflows. Credit approval is recommended only with strict monitoring of cash flow and working capital to mitigate risk.

IMAGINEERING ENGINEERING LTD - Analysis Report

Company Number: 14193265

Analysis Date: 2025-07-29 15:54 UTC

1. Credit Opinion:
   CONDITIONAL APPROVAL. Imagineering Engineering Ltd is a very early-stage company with minimal financial history and limited scale. The company shows a positive net asset position (£267) with cash just covering current liabilities (£16,795 cash vs £16,528 current liabilities), indicating a very tight liquidity position. No employees suggest the company is either owner-operated or in initial setup phase. Given its recent incorporation (June 2022) and very small scale, it is recommended to approve credit facilities only under tight conditions with close monitoring of cash flow and working capital. The director loan has been largely repaid, which is positive, but the company’s ability to generate sustainable income and cover liabilities is not yet demonstrated.

2. Financial Strength:
   The balance sheet is very modest with net assets of £267 and no fixed assets. The company’s equity base is minimal, reflecting its micro size. Current liabilities mainly consist of taxes and social security plus a small director loan. The absence of fixed assets and limited current assets highlight a fragile financial structure with minimal buffer to absorb shocks. The shareholder funds have increased slightly from £1 to £267, indicating some accumulated profit or capital injection, but overall financial strength remains weak due to the company’s scale and limited asset base.

3. Cash Flow Assessment:
   Cash on hand is £16,795, just sufficient to cover current liabilities of £16,528, resulting in a net working capital of £267. This implies a very tight liquidity position with little margin for unexpected expenses or delays in receivables. No significant debtor or stock balances exist, indicating limited operating scale and possibly no ongoing contracts generating receivables. The company’s cash flow is likely dependent on director funding or timely client payments. The repayment of the director’s loan is a positive sign, but ongoing monitoring of cash flow sufficiency will be critical.

4. Monitoring Points:

• Continuous monitoring of liquidity ratios, especially current ratio and net working capital, to ensure the company maintains sufficient cash to meet short-term obligations.
• Watch for any overdue tax or social security payments as these are significant components of current liabilities.
• Track the company’s ability to generate revenue and build trade receivables or other current assets to improve working capital.
• Review director loan balances and any further advances or repayments.
• Monitor the company’s filing compliance and any changes in corporate status or ownership that might affect creditworthiness.