STONBRICK ENGINEERING LIMITED

Executive Summary

Stonbrick Engineering Limited shows persistent negative net assets and working capital deficits, reflecting ongoing financial weakness and liquidity constraints. The company relies on director loans and lacks sufficient cash flow to cover liabilities, raising concerns about its capacity to meet credit obligations. Credit approval is not recommended without substantial turnaround or capital support.

STONBRICK ENGINEERING LIMITED - Analysis Report

Company Number: 13281225

Analysis Date: 2025-07-29 15:06 UTC

1. Credit Opinion: DECLINE
   Stonbrick Engineering Limited demonstrates ongoing financial distress with persistent negative net assets and net current liabilities over the last three years. The company’s liabilities exceed current assets by approximately £1,848 as of the latest accounts, indicating poor liquidity and weak balance sheet resilience. The shareholder funds are negative and deteriorating, reflecting accumulated losses without signs of profitability or capital injection. The company relies heavily on director loans (£2,900), which may not constitute stable or long-term funding. Given these factors, the company’s ability to service new or existing credit obligations is doubtful without significant improvement or external support.

2. Financial Strength:
   The balance sheet shows a continued erosion of equity from an initial positive net asset position of £863 in 2021 to a negative £1,848 in 2025. Fixed assets are negligible, fully depreciated computer equipment, offering no collateral value. The company’s current liabilities consistently exceed current assets, resulting in negative working capital. The small share capital (£2) and negative retained earnings indicate minimal financial buffer to absorb losses or support growth. Overall, the financial position is weak, and the company is technically insolvent on a balance sheet basis.

3. Cash Flow Assessment:
   Cash on hand is minimal (£1,111), only enough to cover a fraction of current liabilities (£2,959). Negative net current assets indicate liquidity strain and potential difficulties meeting short-term obligations as they fall due. The company’s working capital deficiency and reliance on director loans suggest cash flow challenges that could impede operational continuity or debt servicing without additional capital injection or improved earnings.

4. Monitoring Points:

• Track changes in net current assets and net liabilities to detect any improvement or further deterioration.
• Monitor director loan balances and terms to assess the sustainability of funding.
• Review turnover and profitability trends once available to evaluate if operational performance improves.
• Keep a close watch on cash balances relative to short-term liabilities.
• Assess any changes in ownership or capital structure that could improve financial stability.