PKB ENGINEERING SOLUTIONS LTD

Executive Summary

PKB Engineering Solutions Ltd has improved its financial position substantially over the last year, moving from net liabilities to a positive net asset and working capital position. The company is small but currently solvent with adequate liquidity to meet short-term obligations. Credit approval is recommended with conditions focused on ongoing monitoring of liquidity, profitability, and control risks due to the company’s size and limited operating history.

PKB ENGINEERING SOLUTIONS LTD - Analysis Report

Company Number: 13667416

Analysis Date: 2025-07-19 12:15 UTC

1. Credit Opinion: APPROVE with conditions
   PKB Engineering Solutions Ltd is a recently incorporated micro-entity that has demonstrated a positive turnaround in financial position from 2023 to 2024. The current positive net assets and net current assets indicate the company is solvent with manageable short-term liabilities. However, given the limited financial history, small scale, and concentrated control by a single director, credit approval should be conditional on ongoing monitoring of liquidity and profitability trends.

2. Financial Strength:

• The balance sheet shows a modest but positive net asset base of £10,251 as at 31 October 2024, recovering from a negative position the prior year (-£11,798).
• Current assets increased significantly to £29,903, primarily cash or receivables likely, supporting liquidity.
• Current liabilities increased to £19,652 but remain covered by current assets, resulting in positive net current assets of £10,251.
• Shareholders’ funds mirror net assets, indicating no external equity investment beyond the owner’s capital.
• The company is micro-sized with only 2 employees, reflecting a small operational scale and limited fixed assets (not separately reported).

3. Cash Flow Assessment:

• The increase in current assets coupled with manageable current liabilities suggests improved working capital management and liquidity.
• Positive net current assets indicate the company can likely meet short-term obligations without distress.
• No audit or detailed cash flow statements are available, so cash flow visibility is limited.
• The company’s ability to service debt depends on continued maintenance of this working capital position and generation of operating cash flows.

4. Monitoring Points:

• Monitor quarterly or annual updates on net current assets and net profit to ensure the positive trend continues.
• Watch for any material increases in short-term liabilities or delayed payments to suppliers that could strain liquidity.
• Track any changes in director control or additional financial commitments that could increase risk.
• Review turnover and profit figures once available to assess revenue growth and operational efficiency.
• Given the company’s micro status and single director ownership, conduct periodic credit reviews before increasing limits.