PEAK PERFORMANCE ENGINEERING LTD

Executive Summary

PEAK PERFORMANCE ENGINEERING LTD operates with a very limited financial base and marginal liquidity, supported by director advances rather than operational cash flow. While the latest accounts show a slight improvement in equity, the company remains financially fragile. Credit exposure should be minimal and subject to close monitoring of cash flow and continued financial strengthening.

PEAK PERFORMANCE ENGINEERING LTD - Analysis Report

Company Number: NI677708

Analysis Date: 2025-07-29 16:27 UTC

1. Credit Opinion: CONDITIONAL APPROVAL
   PEAK PERFORMANCE ENGINEERING LTD is a micro private limited company engaged in the specialized sector of aircraft and spacecraft repair and maintenance. The company shows very limited scale with minimal financial resources and a history of negative shareholders' funds until the latest financial year. Although the recent year shows a slight improvement to positive equity (£100), the current liabilities are nearly equal to current assets, indicating minimal liquidity buffer. The director’s advances have increased, highlighting reliance on related party funding rather than operational cash generation. Given these factors, credit exposure should be limited and conditional on continued monitoring of cash flow and equity improvements.

2. Financial Strength:
   The balance sheet is very modest, with current assets of £7,590 matched closely by current liabilities of £7,490 as of 31 March 2024. Shareholders’ funds have improved from a deficit of £180 to a marginal positive of £100, showing some progress but still reflecting a fragile financial position. There are no fixed assets reported, and the company relies heavily on working capital and director funding (£5,284 advances carried forward). The absence of long-term assets and low equity base imply limited financial resilience and little cushion against shocks.

3. Cash Flow Assessment:
   The company’s net current assets (working capital) position is positive but only by £100, effectively a break-even liquidity position. The increase in director’s advances suggests external funding support is critical to meet obligations. The company employs no staff currently, implying minimal payroll commitments. However, the narrow liquidity margin and reliance on director loans indicate potential cash flow vulnerability if operating revenues do not improve or if additional external funding is not secured.

4. Monitoring Points:

• Liquidity position: Current ratio and net current assets to ensure sufficient short-term coverage of liabilities.
• Equity trajectory: Watch for sustained positive shareholders’ funds to build financial stability.
• Director advances: Monitor related party funding levels and any repayment or conversion to equity.
• Revenue and profit growth: Assess operational performance improvements to reduce reliance on director loans.
• Filing compliance: The company is currently up to date on accounts and confirmation statements, which is positive.