RER ENGINEERING LIMITED

Executive Summary

RER Engineering Limited shows promising financial growth and strong liquidity for a micro-entity in its first years of operation. The balance sheet improvements and clean compliance record support a positive credit assessment. Continued monitoring of liabilities and working capital will be important as the business develops.

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Company Analysis

This analysis is opinion only and should not be interpreted as financial advice.

RER ENGINEERING LIMITED - Analysis Report

Company Number: SC728662

Analysis Date: 2025-07-19 12:43 UTC

  1. Credit Opinion: APPROVE
    RER Engineering Limited presents a solid credit profile for a micro-entity at an early stage of development. The company has demonstrated strong growth in net assets and working capital over two years, with no overdue filings or indications of distress. The directors appear stable and committed, with no adverse records. The increase in current liabilities due after one year likely reflects longer-term financing, which is manageable given the strong net current assets position. Overall, the company should be able to service modest credit facilities if required.

  2. Financial Strength:
    The balance sheet shows improving financial strength. Net assets increased from £32.9k in 2022 to £87.3k in 2024, reflecting retained earnings and equity injections. Fixed assets are minimal (£1.7k), consistent with a service-oriented engineering business. Current assets rose substantially to £146.9k by April 2024, while current liabilities remain moderate at £42.2k. The presence of £42.2k in long-term creditors suggests some longer-term borrowing or deferred income which needs monitoring but does not currently impair solvency.

  3. Cash Flow Assessment:
    The company exhibits strong liquidity with net current assets of £129k as of April 2024, up from £36.6k in 2022. This suggests sufficient short-term funds to cover immediate obligations and working capital needs. The average number of employees is small (2), indicating low fixed overheads. There is no indication of cash flow stress or reliance on overdrafts. However, detailed cash flow statements are unavailable, so monitoring actual cash conversion cycles will be important going forward.

  4. Monitoring Points:

  • Track any increases in long-term liabilities to ensure they remain sustainable relative to equity and cash flows.
  • Monitor timely payment of current liabilities as the company grows.
  • Watch for changes in working capital requirements as operations scale up.
  • Review director and shareholder stability and any changes in ownership or control.
  • Confirm the company maintains up-to-date filing compliance to avoid regulatory or credit risk flags.

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