IUGA ENGINEERING LTD

Executive Summary

IUGA ENGINEERING LTD is currently not creditworthy due to negative net assets and persistent liquidity shortfalls. The company’s financial position shows ongoing deterioration with minimal assets and insufficient working capital to cover liabilities. Without significant improvement in cash flow or capital structure, extending credit is not advisable.

IUGA ENGINEERING LTD - Analysis Report

Company Number: 13024044

Analysis Date: 2025-07-20 18:48 UTC

1. Credit Opinion: DECLINE
   IUGA ENGINEERING LTD demonstrates persistent negative net assets and net current liabilities over four consecutive years, indicating an ongoing erosion of capital and poor liquidity. The company's inability to generate positive working capital, combined with zero reported employees and minimal current assets (£31), raises serious concerns about its capacity to meet short-term obligations or service any credit facility. The absence of turnover or profit figures further clouds the assessment but the financial deterioration and negative equity are strong red flags.

2. Financial Strength:
   The balance sheet shows a consistent net liability position worsening from -£1,946 (2020) to -£3,226 (2023). Current liabilities substantially exceed current assets, resulting in negative net current assets of -£3,226 in the latest year. Shareholders’ funds are negative by the same amount, reflecting accumulated losses or capital deficiency. The company has minimal fixed assets or tangible resources to support debt. The micro-entity status implies limited complexity but also limited scale or financial robustness.

3. Cash Flow Assessment:
   With current assets at only £31 against current liabilities exceeding £3,200, liquidity is critically constrained. There is no indication of cash or cash equivalents sufficient to cover immediate debts. Negative working capital suggests the company is reliant on external funding or director support to continue operations. The absence of employees may mean low operational costs, but also little revenue generating activity, which undermines cash flow prospects.

4. Monitoring Points:

• Monitor any changes in current liabilities and asset base, particularly cash and receivables.
• Watch for improvements in net current assets or positive cash flow generation.
• Track filings for any indications of financial restructuring or capital injections.
• Review director’s reports or strategic outlook for plans to return to profitability.
• Assess any changes in ownership/control or director appointments indicating operational change.