SIMURG ENGINEERING AND DESIGN LTD

Executive Summary

Simurg Engineering and Design Ltd shows early-stage growth with modest financial resources and tight working capital. The company’s balance sheet is small but improving, while liquidity is constrained by low cash balances and reliance on debtor collections. Conditional credit approval is advised, with emphasis on careful monitoring of cash flow, debtor management, and liabilities to mitigate short-term financial risks.

SIMURG ENGINEERING AND DESIGN LTD - Analysis Report

Company Number: 13100083

Analysis Date: 2025-07-20 14:59 UTC

1. Credit Opinion: CONDITIONAL APPROVAL Simurg Engineering and Design Ltd is an active private limited company in the specialized design and business support sector, with a relatively short operating history since incorporation in late 2020. The company’s recent accounts show modest net assets (£549) and net current assets (£549), indicating limited financial buffers. The business has demonstrated growth in debtors and current assets year-on-year, which suggests expanding operations. However, the small equity base and tight working capital position imply some vulnerability to cash flow pressures. Given the absence of an audit and no employees reported, management appears lean but may face operational risks if demand fluctuates. Approval is recommended with conditions requiring ongoing monitoring of cash flow liquidity and debtor collections.

2. Financial Strength: The company’s balance sheet shows total net assets increasing from £151 in 2023 to £549 in 2024, indicating incremental retained earnings accumulation. Share capital remains nominal at £100, with the majority of equity from the profit and loss reserve. Current assets are primarily trade debtors (£7,720) with no cash reported at the latest year end, while current liabilities have risen to £7,171. This results in a net current assets position of only £549, reflecting tight liquidity. No fixed assets or long-term liabilities are disclosed, consistent with a service-oriented business model. The financial structure is very modest, with limited capitalisation and tight working capital, which constrains financial resilience.

3. Cash Flow Assessment: The company’s cash position is notably weak, with no cash at bank reported as of 30 November 2024 (compared to £549 the prior year). Current assets are almost entirely trade debtors, which presents a risk if collections slow. Current liabilities, including taxation and social security costs, have increased substantially to £7,171, narrowing the margin for operational liquidity. The working capital is positive but minimal (£549), limiting the company’s ability to absorb short-term financial shocks. The absence of employees suggests low overheads, but also potential dependency on the director for operational continuity. Cash flow management and debtor control should be closely monitored.

4. Monitoring Points:

• Debtor collection periods and ageing profile to ensure timely cash inflows.
• Current liabilities growth, especially tax and social security obligations, to avoid liquidity strain.
• Profitability trends and retention of earnings to build equity and improve financial buffers.
• Any changes in business scale or operating model that could impact cash requirements.
• Director involvement and potential plans for capital injection or financing.