THREE ENGINEERS LTD

Executive Summary

THREE ENGINEERS LTD is a small private company showing improving liquidity and net asset position, but it remains operationally minimal with no employees and moderate long-term liabilities. While statutory filings are up to date, an investor should seek further clarity on the nature of the company’s liabilities, asset quality, and operational model to fully assess risk. Overall, the company presents a medium risk profile given its size and financial volatility.

THREE ENGINEERS LTD - Analysis Report

Company Number: 13426287

Analysis Date: 2025-07-29 13:06 UTC

1. Risk Rating: MEDIUM
   The company shows improving net assets and a positive working capital position in the latest year, indicating some financial stability. However, the presence of non-current creditors and the small scale of operations raise caution about longer-term solvency and operational sustainability.

2. Key Concerns:

• Non-current liabilities: The accounts show creditors falling due after more than one year (£10,107 in 2025), which may indicate medium-term debt obligations that need monitoring for repayment capacity.
• Small scale and no employees: The company operates with zero employees and minimal share capital (£1), suggesting a very lean structure which could be vulnerable operationally.
• Volatility in net assets: The net assets swung from negative (-£5,000 in 2024) to positive (£18,408 in 2025), indicating potentially unstable financial performance or capital injections that require clarity.

3. Positive Indicators:

• Strong improvement in current assets: Current assets increased significantly from £2,214 in 2024 to £28,515 in 2025, improving liquidity indicators.
• Positive net current assets: The company maintains a positive working capital position in both recent years, evidencing ability to meet short-term liabilities.
• No overdue filings: The company is current on its accounts and confirmation statement filings, indicating compliance with statutory requirements.

4. Due Diligence Notes:

• Review the nature and terms of the £10,107 non-current liabilities to assess repayment schedule and impact on cash flows.
• Investigate the source of the significant increase in current assets in 2025 to understand sustainability and quality of these assets (e.g., cash, receivables).
• Clarify the absence of employees and how operational activities are managed to assess business continuity risks.
• Confirm whether there have been any capital injections or related party transactions explaining the net assets fluctuation.
• Evaluate management’s plans for growth, revenue generation, and how the company finances ongoing operations given its micro-entity status.