NAVALTECH ENGINEERING LTD

Executive Summary

NAVALTECH ENGINEERING LTD is a start-up micro-entity with a minimal net asset base and limited financial history. The company’s current liquidity position is tight but positive, warranting cautious conditional credit approval subject to close monitoring of cash flow and trading performance. The director’s significant control and involvement support operational oversight during this early growth phase.

NAVALTECH ENGINEERING LTD - Analysis Report

Company Number: 15425155

Analysis Date: 2025-07-29 18:27 UTC

1. Credit Opinion: CONDITIONAL APPROVAL
   NAVALTECH ENGINEERING LTD is a newly incorporated micro-entity with minimal financial history and limited financial resources. The company shows a positive but marginal net current asset position (£1,003) at the year-end, indicating very tight liquidity. Given the company’s infancy (incorporated January 2024) and limited operating track record, credit facilities should be cautiously offered with conditions such as regular financial monitoring and possibly secured lending or personal guarantees from the sole significant controller and director, Mr Surendran Praveen Kumar.

2. Financial Strength:
   The company’s balance sheet is very modest, with current assets of £24,384 offset by current liabilities of £23,381, leaving net assets and shareholders’ funds at £1,003. There are no fixed assets or long-term liabilities reported. The equity base is minimal, reflecting the early stage of the business. The company’s micro-entity filing status and small employee base (2 employees) are consistent with a start-up profile. There is no evidence yet of profitability or retained earnings, which is typical at this stage.

3. Cash Flow Assessment:
   Working capital is positive but very limited (£1,003), suggesting minimal liquidity cushion. The close balance between current assets and liabilities indicates the company may rely heavily on timely collections and short payment cycles to maintain solvency. The absence of cash flow statements or profit and loss data constrains a full cash flow assessment, but the small scale implies tight cash management is essential. The director’s control and involvement may support operational stability in the short term.

4. Monitoring Points:

• Track future trading performance and cash flow trends, especially accounts receivable and payable days.
• Monitor any increase in liabilities that could strain liquidity.
• Review subsequent annual accounts for profitability emergence and equity growth.
• Confirm timely filing compliance continues for accounts and confirmation statements.
• Consider director’s creditworthiness given personal control and responsibility.