SWITCH ENGINEERING GROUP LIMITED

Executive Summary

Switch Engineering Group Limited exhibits a solid solvency position with positive net assets and no overdue filings, reflecting sound regulatory compliance. However, the notable decline in current assets and net assets in the latest year, combined with minimal operational scale, suggests some liquidity and operational risks that warrant further investigation. Overall, the company appears stable but small, requiring additional due diligence on cash flows and business prospects for a comprehensive risk assessment.

SWITCH ENGINEERING GROUP LIMITED - Analysis Report

Company Number: 12892021

Analysis Date: 2025-07-29 14:15 UTC

1. Risk Rating:
LOW to MEDIUM

Justification:
The company maintains positive net assets and net current assets, indicating solvency and some short-term liquidity. However, the sharp decline in current assets and net assets from 2023 to 2024, alongside minimal fixed assets and a single employee, introduces some operational and liquidity concerns typical of a micro-entity in early years.

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2. Key Concerns:

• Declining Net Assets and Current Assets: Net assets declined from £62,063 in 2023 to £49,408 in 2024. Current assets dropped significantly from £97,508 to £55,725 in the same period, suggesting reduced cash or receivables that may impact liquidity.
• Minimal Fixed Assets and Limited Operational Scale: Fixed assets remain negligible (£1,136 in 2024), and the company operates with only one employee (including the director), which may limit operational capacity and scalability.
• Limited Financial Disclosure and Audit Exemption: Filing under micro-entity provisions and exemption from audit limits transparency. This restricts investor ability to assess detailed financial performance or underlying risks fully.

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3. Positive Indicators:

• Positive Net Current Assets and Shareholders’ Funds: The company consistently reports positive working capital and equity, indicating it can meet short-term obligations.
• Compliance with Filing Requirements: No overdue filings or confirmation statements indicate good regulatory compliance and governance practices to date.
• Stable Company Status and Clear Address: The company remains active and in good standing, with a fixed UK address, providing operational stability.

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4. Due Diligence Notes:

• Review detailed cash flow statements and turnover trends to assess operational cash generation and sustainability beyond balance sheet snapshots.
• Investigate reasons behind the significant reduction in current assets from 2023 to 2024 to understand liquidity pressures or changes in business activity.
• Request management commentary or strategic outlook to clarify business model, client base, and plans for growth or diversification given the micro-entity scale and limited staffing.
• Verify no undisclosed liabilities or contingent risks not captured in micro-entity accounts due to limited disclosure.
• Confirm director background and any related-party transactions given single director involvement and scale.

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