NETWORK ENGINEERING TEAM LIMITED

Executive Summary

NETWORK ENGINEERING TEAM LIMITED is a micro private company with declining net assets and limited liquidity, raising significant concerns about its ability to service credit facilities. The absence of profitability data and minimal financial scale suggest a high credit risk profile. Without stronger financial metrics or collateral, credit approval is not recommended at this time.

NETWORK ENGINEERING TEAM LIMITED - Analysis Report

Company Number: 12586964

Analysis Date: 2025-07-20 18:15 UTC

1. Credit Opinion: DECLINE
   NETWORK ENGINEERING TEAM LIMITED demonstrates very limited financial scale and weakening net assets over recent years, with net assets declining from £16,107 in 2020 to £1,885 in 2024. The company operates as a micro entity with minimal current assets (£2,609 in 2024) and low working capital, which constrains its ability to cover unforeseen cash flow needs or absorb shocks. The lack of turnover and profitability data (no P&L provided) raises concerns about sustainable earnings generation and debt servicing capacity. Given these factors and no evidence of business growth or strong liquidity cushion, the company is a high credit risk for lending or extended credit without substantial guarantees or collateral.

2. Financial Strength:
   The balance sheet shows very low asset base and net assets of only £1,885 at the 2024 year-end, down from £16,107 in 2020. Current liabilities remain low but relative to current assets, net current assets have also declined steadily. The company has no fixed assets reported since 2021. Share capital is nominal (£1.00), indicating limited equity injection. This thin capitalization and declining net asset base indicate weak financial strength and limited buffer against adverse events.

3. Cash Flow Assessment:
   Current assets mainly consist of cash and receivables of £2,609 with current liabilities of £724, resulting in positive but very modest net working capital (£1,885). The shrinking working capital trend over recent years suggests tightening liquidity. No information is available on operating cash flow or profitability, which restricts assessment of cash generation capability. The micro entity status and zero reported employees could imply a very small or dormant operation with limited cash inflows, thus increasing liquidity risk.

4. Monitoring Points:

• Track net asset and working capital trends closely to detect further erosion.
• Request and review profit and loss accounts or cash flow statements to assess earnings and liquidity generation.
• Monitor timely filing of accounts and confirmation statements to ensure compliance.
• Watch for any increase in current liabilities or overdrafts that may strain cash flow.
• Evaluate director activity and business development plans to understand growth prospects.