NG MECHANICAL SERVICES LIMITED

Executive Summary

NG Mechanical Services Limited is a newly formed micro-entity with a modest but positive financial position including net current assets and net assets. The company shows initial liquidity strength but carries some long-term liabilities relative to equity. Credit approval is recommended on a conditional basis with close monitoring of financial performance and debt levels given the limited operating history and scale.

NG MECHANICAL SERVICES LIMITED - Analysis Report

Company Number: 14816802

Analysis Date: 2025-07-20 11:42 UTC

1. Credit Opinion: CONDITIONAL APPROVAL
   NG Mechanical Services Limited is a newly incorporated micro-entity with a very limited operating history (just over one year). The company’s financial statements show a positive net asset position and net current assets, indicating an initial sound capital base. However, the presence of long-term liabilities (£8,701) relative to net assets (£7,823) signals some leverage which should be monitored carefully. Given the limited trading history and scale, credit approval should be conditional on regular financial updates and prudent exposure limits.

2. Financial Strength:
   The company reported net assets of £7,823 as of 30 April 2024, supported by fixed assets of £8,437 and net current assets of £8,087. Current assets (£24,381) comfortably exceed current liabilities (£16,294), reflecting a positive short-term liquidity position. However, the capital structure includes creditors falling due after one year of £8,701, which is significant given the small equity base. Shareholders’ funds are entirely held by a single director, which may simplify governance but also concentrates control risk.

3. Cash Flow Assessment:
   Current assets primarily consist of cash or equivalents and short-term receivables that provide adequate working capital coverage over current liabilities. The net current asset position of £8,087 suggests the company should have sufficient liquidity to meet short-term obligations. However, as a micro-entity with only one employee (the director), cash flow stability depends heavily on ongoing contracts and receivables collection. There is no audit or detailed cash flow statement available, so ongoing liquidity monitoring is advised.

4. Monitoring Points:

• Track quarterly management accounts to assess revenue growth and cash flow trends.
• Monitor the level and terms of long-term liabilities to ensure debt servicing capacity.
• Watch for any changes in directors or ownership that might impact governance or financial stability.
• Keep an eye on overdue filings or any regulatory compliance issues.
• Assess the company’s ability to scale operations beyond one employee and manage working capital efficiently as business grows.