PWT ENGINEERING LTD

Executive Summary

PWT ENGINEERING LTD is a recently incorporated micro-entity operating in engineering consultancy with significant liquidity challenges as evidenced by negative net current assets and declining net assets over the last two years. While statutory compliance is current and operating costs appear minimal, the company’s financial position suggests a high risk of short-term solvency issues. Further due diligence on cash flows and creditor composition is warranted to assess operational viability.

PWT ENGINEERING LTD - Analysis Report

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.