MTS ENGINEERING LTD

Executive Summary

MTS Engineering Ltd is a recently established micro-entity in the industrial machinery installation sector demonstrating initial capitalization and regulatory compliance. While the company reports positive net assets and directors express confidence in business prospects, its limited operating history and tight liquidity position warrant cautious monitoring. Further due diligence on operational performance and cash flow sustainability is recommended to fully assess investment risk.

MTS ENGINEERING LTD - Analysis Report

Company Number: 14721513

Analysis Date: 2025-07-20 14:48 UTC

1. Risk Rating: LOW
   The company is newly incorporated (March 2023) and has filed timely accounts without any overdue filings. It reports positive net assets and minimal net current assets. Directors confirm the going concern basis, reflecting confidence in operational sustainability.

2. Key Concerns:

• Limited Operating History: Being less than one year old, the company’s financial track record is minimal, increasing uncertainty about future performance and cash flow stability.
• Very Narrow Working Capital Margin: Net current assets are marginal (£145), indicating tight liquidity and limited buffer against short-term obligations.
• Concentration of Control: Two directors each hold 25-50% shares and voting rights, potentially limiting governance diversity and increasing operational risk if any key person is unable to perform.

3. Positive Indicators:

• Positive Net Assets: The company reports net assets of £16,711, indicating an initial capital base and absence of immediate solvency concerns.
• Timely Compliance: All statutory filings are up to date with no overdue accounts or confirmation statements, reflecting good regulatory compliance.
• Clear Going Concern Statement: Directors’ report expresses confidence in sales growth and profitability, suggesting management’s optimistic outlook supported by current operational activity.

4. Due Diligence Notes:

• Verify the nature and timing of sales growth and profitability claims to assess sustainability beyond the initial start-up phase.
• Review detailed cash flow projections to evaluate liquidity risk given minimal working capital.
• Assess dependency on key personnel (the two directors) and any succession or contingency plans.
• Confirm absence of contingent liabilities or off-balance sheet risks not disclosed in the micro-entity accounts.