I-TECH ENGINEERING LIMITED

Executive Summary

I-Tech Engineering Limited operates on a small scale with limited financial resources and shows signs of liquidity pressure due to a slight net current liability and declining equity. While the company’s active status and director’s full control are positives, the low financial cushion warrants a cautious credit approach. Conditional approval with close financial monitoring is recommended to mitigate risk exposure.

I-TECH ENGINEERING LIMITED - Analysis Report

Company Number: 13831099

Analysis Date: 2025-07-20 15:28 UTC

1. Credit Opinion: CONDITIONAL APPROVAL
   I-Tech Engineering Limited shows a modest but declining net asset base and working capital position, indicating some liquidity strain. The company is very small (micro category) and has limited operational history since incorporation in 2022. The director holds full control, supporting decision-making clarity but concentrating risk. Given the current slight net current liability and a reduction in shareholders' funds from £7,209 to £3,276 within one year, credit extension should be cautiously considered with conditions such as periodic financial reviews and limits on exposure.

2. Financial Strength:
   The balance sheet reflects low fixed assets (£3,658) and a current asset base (~£19,611) almost fully offset by current liabilities (£19,993), resulting in a negative net working capital of £382 at 31 January 2024. Shareholders’ funds have decreased by over 50% year-on-year, from £7,209 to £3,276, indicating either losses or drawings exceeding profits. The company operates with minimal scale and capital, limiting its buffer against financial stress.

3. Cash Flow Assessment:
   The net current liabilities position signals potential cash flow tightness in meeting short-term obligations. With only one employee and minimal fixed assets, the company’s operating cash requirements are likely low, but the current liabilities slightly exceed current assets, indicating a need for close monitoring of receivables collection and payables management. No audit or detailed cash flow statement is available, so liquidity assessment must rely on working capital trends.

4. Monitoring Points:

• Watch quarterly or interim financial updates for stabilization or improvement in net current assets.
• Monitor any changes in director’s shareholding or additional capital injections.
• Track payment history on credit facilities and supplier terms adherence.
• Observe business growth indicators such as contract wins or revenue increases given the company’s industry (industrial machinery installation and repair).
• Keep alert for any overdue filings or governance concerns, although currently filings are up to date.