PROFESSIONAL MECHANICAL ENGINEERING GROUP LIMITED

Executive Summary

Professional Mechanical Engineering Group Limited displays strong balance sheet improvement and liquidity enhancement over the last year, supporting a positive credit stance. The company’s low asset base and increasing retained earnings suggest prudent financial management with capacity to meet short-term liabilities. Continued monitoring of debtor collections and tax liabilities is recommended to sustain this credit profile.

PROFESSIONAL MECHANICAL ENGINEERING GROUP LIMITED - Analysis Report

Company Number: 13737957

Analysis Date: 2025-07-19 11:55 UTC

1. Credit Opinion: APPROVE
   Professional Mechanical Engineering Group Limited demonstrates an improving financial position with a significant increase in net current assets and shareholder funds over the last year. The company maintains positive working capital and a cash balance that comfortably covers short-term liabilities. Directors have no disqualifications, and the business operates in a specialized engineering consultancy sector, indicating stable demand. Given these factors, the company appears capable of servicing debt and meeting commercial commitments.

2. Financial Strength:
   The balance sheet shows net current assets of £47,201 as of 30 November 2024, up from £7,738 the previous year, reflecting strong liquidity improvement. Shareholders’ funds have increased from £9,693 to £48,177, indicating retained earnings growth and capital strengthening. Fixed assets are minimal (£976), consistent with a consulting business model, limiting asset risk exposure. The company’s gearing is low, with no long-term liabilities reported, supporting financial resilience.

3. Cash Flow Assessment:
   Cash at bank rose sharply to £48,415 from £7,428 year-on-year, providing ample liquidity for operational needs and short-term obligations (£15,883). Debtors have increased modestly to £14,669, but remain manageable relative to cash balances. Current liabilities are covered over three times by current assets, indicating healthy working capital management and low risk of cash flow stress.

4. Monitoring Points:

• Continued growth or stability in net current assets and cash balances.
• Timely collection of trade and other debtors to maintain liquidity.
• Monitor taxation and social security creditor balances, which increased notably, to avoid unexpected cash outflows.
• Watch for any changes in director status or company filings that might impact governance or compliance.