Company Number: 14251579

Analysis Date: 2025-07-29 20:02 UTC

1. Risk Rating: HIGH
   PWT ENGINEERING LTD exhibits significant liquidity concerns and negative working capital, which pose a high risk to its short-term solvency and operational stability.

2. Key Concerns:

• Negative Net Current Assets: The company shows a consistent and worsening negative net current asset position (£-14,736 in 2024 vs. £-9,553 in 2023), indicating insufficient current assets to cover short-term liabilities.
• Low Cash and Current Assets: Current assets have decreased from £11,059 in 2023 to £7,042 in 2024, further exacerbating liquidity issues.
• Declining Net Assets and Shareholders’ Funds: Net assets have decreased significantly from £22,759 in 2023 to £10,714 in 2024, reducing the company’s financial buffer.

3. Positive Indicators:

• No Overdue Filings: The company’s accounts and confirmation statement are up to date with no overdue filings, suggesting compliance with statutory requirements.
• Micro-Entity Status: As a micro-entity with minimal employees (average 1), the company likely has lower overhead costs which may reduce operational strain.
• No Indication of Insolvency or Liquidation: The company is active and not currently in liquidation, administration, or receivership.

4. Due Diligence Notes:

• Examine Cash Flow Statements: Detailed cash flow information is needed to assess whether the company can generate sufficient operating cash to meet liabilities.
• Investigate Trade Creditors: Identify the nature and terms of current liabilities—whether short-term loans, trade creditors, or accruals—to evaluate payment risk.
• Review Business Model and Contracts: Understand client base, revenue streams, and contract stability given the company’s short operating history since incorporation in 2022.
• Director and Ownership Background: Confirm details of directors and persons with significant control for any red flags or experience in managing liquidity risks.