Company Number: 13863790

Analysis Date: 2025-07-29 13:35 UTC

1. Risk Rating: LOW
   NAS Environmental Engineering Ltd presents a low risk profile based on the available financial and operational data. The company shows positive net current assets and net assets, with no overdue filings or signs of distress. The director and controlling shareholder is clearly identified with no adverse regulatory flags.

2. Key Concerns:

• Limited financial history: Incorporated in 2022 with only two years of financial data, limiting trend analysis and long-term performance assessment.
• Small scale: As a micro-entity with only one employee and minimal fixed assets, the company’s operational scale is very limited, potentially constraining growth and resilience.
• Cash position decline: Current assets decreased from £34,795 to £25,774 year-on-year, which may warrant monitoring to ensure liquidity is maintained.

3. Positive Indicators:

• Strong working capital position: Net current assets improved significantly from £4,292 to £22,349, indicating good short-term liquidity.
• Positive net assets and shareholders’ funds: Increased from £5,185 to £23,011, reflecting retained earnings or capital injection, supporting solvency.
• Compliance record: All statutory accounts and confirmation statements are filed on time, demonstrating sound regulatory compliance.

4. Due Diligence Notes:

• Investigate the nature of the decrease in current assets and large reduction in current liabilities between 2023 and 2024 to understand cash flow dynamics.
• Confirm the source of equity increase contributing to the rise in net assets—whether from retained profits or additional capital contributions.
• Assess client base, revenue streams, and contracts to evaluate operational sustainability beyond the micro-entity scale.
• Review director’s background for any regulatory or reputational risks, though none are apparent from current data.