Company Number: 13990152

Analysis Date: 2025-07-20 11:52 UTC

1. Risk Rating: MEDIUM
   MC ENGINEERED SOLUTIONS LTD shows improving financial performance with positive net assets and profitability as of the latest accounts. However, the company is relatively young (incorporated 2022), with modest asset base and some non-current liabilities which moderate the risk profile. The absence of audit and limited operational history contribute to a medium risk assessment.

2. Key Concerns:

• Modest Net Assets and Fixed Assets: Net assets improved to £17,579 in 2025 from £933 in 2024, but remain low, reflecting a small equity cushion against liabilities. Fixed assets decreased from £14,220 in 2024 to £9,006 in 2025, potentially indicating asset disposals or limited investment.
• Non-Current Liabilities: Outstanding long-term creditors of £2,628 (2025) down from £18,000 (2024) indicate some leverage. While reduced, any further increase could stress solvency given the small asset base.
• Unaudited Accounts: The financial statements are unaudited under small company exemption, which limits the assurance on accuracy and completeness of financial data. This requires additional due diligence to confirm reliability.

3. Positive Indicators:

• Profitability and Revenue Growth: Turnover increased from £129,255 in 2024 to £170,849 in 2025, with the company moving from an operating loss (£3,498 in 2024) to a profit before tax of £18,694 in 2025, indicating improving operational performance and business sustainability.
• Strong Liquidity Position: Cash and cash equivalents increased to £20,306 in 2025 from £12,151 in 2024. Net current assets improved to £11,202 in 2025, suggesting adequate short-term liquidity to meet current obligations.
• Timely Filings and Compliance: Accounts and confirmation statements are filed on time with no overdue filings, reflecting good regulatory compliance and governance.

4. Due Diligence Notes:

• Verify the nature and terms of non-current liabilities to assess repayment risk and potential impact on solvency.
• Obtain management explanations for the decrease in fixed assets and ensure there are no impairments or asset write-offs impacting future operations.
• Review contracts or customer concentration to gauge revenue stability given growth from a small base.
• Confirm internal controls and accounting practices since accounts are unaudited. Consider requesting reviewed or audited accounts if higher assurance is required.
• Assess director expertise and background beyond the basic information provided, particularly given the company’s recent formation and performance trajectory.