SANDARK ENGINEERING LTD

Executive Summary

Sandark Engineering Ltd is a micro-entity with a weak financial base, characterized by persistent negative working capital and minimal net assets. The company’s liquidity position raises concerns about its ability to service debt, and current financial data does not support credit approval. Close monitoring of working capital and equity injections is essential going forward.

SANDARK ENGINEERING LTD - Analysis Report

Company Number: NI685429

Analysis Date: 2025-07-29 17:43 UTC

1. Credit Opinion: DECLINE
   Sandark Engineering Ltd exhibits a fragile financial position with consistent negative working capital and minimal net assets over the past two years. The company’s inability to generate sufficient current assets to cover current liabilities suggests liquidity constraints, raising concerns about its capacity to meet short-term debt obligations. Given the micro entity size and lack of profitability data, there is insufficient evidence of financial resilience or growth potential to justify extending credit at this stage.

2. Financial Strength:
   The balance sheet shows very limited fixed assets (£2,970 in 2024, down from £3,834 in prior years) and extremely low net assets (£70 as of 2024 year-end). Net current liabilities remain high at approximately £2,479, indicating a working capital deficit that has only marginally improved from prior years. Shareholders’ funds are negligible, reflecting minimal equity cushion. The company’s financial structure is weak, heavily reliant on short-term liabilities exceeding current asset levels.

3. Cash Flow Assessment:
   Current assets are almost entirely cash or equivalents (£132) but are insufficient to cover current liabilities (£2,611), signaling potential liquidity stress. The negative net current assets position implies the company may struggle to finance day-to-day operations without external funding or additional capital injections. With only one employee (the director) and no audit or detailed cash flow statements provided, cash flow visibility is limited, increasing the risk profile for creditors.

4. Monitoring Points:

• Track changes in net current assets to assess improvement or deterioration in working capital management.
• Monitor any capital injections or changes in shareholder funds that could strengthen equity.
• Review payment patterns and trade creditor aging to detect early signs of payment difficulties.
• Observe any increase in current assets or reduction in liabilities, indicating operational improvements or restructuring.
• Keep an eye on director’s conduct and any changes in ownership or management that might affect governance.