RISE ENGINEERING AND TECHNOLOGY LTD

Executive Summary

RISE ENGINEERING AND TECHNOLOGY LTD is a micro-entity showing some improvement in liquidity but remains in a net liabilities position with minimal financial strength. Credit risk is elevated due to negative equity and very limited asset base; therefore, lending should be conditional with close monitoring of cash flow and operational performance. The company’s early stage and sole director control require cautious approach backed by safeguards.

RISE ENGINEERING AND TECHNOLOGY LTD - Analysis Report

Company Number: 13546261

Analysis Date: 2025-07-29 19:16 UTC

1. Credit Opinion: CONDITIONAL APPROVAL
   RISE ENGINEERING AND TECHNOLOGY LTD is a very young micro-entity with limited financial history and a small scale of operations. The company shows marginal improvement in net current assets from negative £172 in 2023 to a positive £27 in 2024, indicating some progress in liquidity. However, the company remains in a net liabilities position with shareholders' funds at negative £103, reflecting accumulated losses. Given the nascent stage of the business, the very small asset base, and the negative equity, credit should be extended cautiously with conditions such as monitoring cash flow closely and requesting personal guarantees or security if lending. The sole director has full control, which may be positive for decision-making speed but concentrates risk.

2. Financial Strength:
   The balance sheet is weak with net liabilities of £103 as of August 2024, though this is an improvement from prior years. Current assets are minimal at £451, consisting likely of cash and receivables, barely covering current liabilities of £424. There are no fixed assets recorded, and the company relies heavily on working capital management. The negative reserves indicate accumulated losses since incorporation. Overall, the company lacks tangible financial strength and capital buffer, common for early-stage micro companies.

3. Cash Flow Assessment:
   Working capital is positive but minimal at £27, reflecting very tight liquidity. The increase in current assets from £252 to £451 suggests some improvement in cash or receivables, but the absolute amounts are very small. There is no indication of significant cash reserves or retained earnings to support operations. The company employs 3 staff on average, so payroll obligations must be managed carefully. The small scale and negative equity imply limited ability to absorb shocks or delays in receivables. Close monitoring of cash flow forecasts is essential.

4. Monitoring Points:

• Quarterly cash flow and working capital levels, ensuring current assets continue to exceed liabilities.
• Profitability trends and movement in reserves to gauge if losses are being controlled.
• Director’s ability and willingness to inject funds or provide guarantees if needed.
• Timely filing of accounts and confirmation statements to maintain regulatory compliance.
• Any changes in business model or scale that may affect credit risk.