UBK ENGINEERING GROUP LTD

Executive Summary

UBK ENGINEERING GROUP LTD displays a stable financial foundation for a young micro-entity with improving net assets and strong working capital. While the company appears capable of meeting short-term obligations, attention should be paid to its longer-term creditor commitments and maintaining liquidity. Conditional approval is recommended with ongoing monitoring of cash flow and debt servicing as the business develops.

UBK ENGINEERING GROUP LTD - Analysis Report

Company Number: SC731822

Analysis Date: 2025-07-29 16:06 UTC

1. Credit Opinion: APPROVE (conditional) UBK ENGINEERING GROUP LTD is a micro-entity incorporated in 2022 and currently active with no overdue filings. The company shows positive net assets increasing from £3,143 in 2023 to £5,467 in 2024 and healthy net current assets improving to £3,755. However, the company is at an early stage, with a small asset base and modest liabilities, including a non-trivial creditor balance due after one year (£1,212). The director is the sole significant controller, suggesting concentrated decision-making but also clear accountability. Approval is recommended with conditions to monitor ongoing liquidity and debt servicing as the company grows.

2. Financial Strength: The balance sheet reflects a stable but modest financial position typical for a micro business. Fixed assets remain minimal (£500), indicating limited investment in long-term assets. Current assets rose from £2,213 to £3,802, outpacing current liabilities (constant at £1,212), resulting in a strong working capital position. Net assets and shareholders' funds almost doubled, showing retained earnings or capital injections supporting solvency. The presence of creditors due after one year (£1,212) suggests some longer-term obligations that require scrutiny.

3. Cash Flow Assessment: The company’s liquidity appears sound, with net current assets of £3,755 versus current liabilities of just £47 (noting a possible inconsistency in creditors within one year between £1,212 and £47, likely a presentation issue). The increase in current assets indicates improved short-term cash or receivables. Given the small scale and two employees, working capital is sufficient to cover immediate debts. However, absence of profit and loss data limits full cash flow evaluation. Monitoring operating cash flow and ability to meet both short and long-term liabilities is advised.

4. Monitoring Points:

• Track liquidity ratios closely, particularly current ratio and quick ratio, to ensure ongoing ability to meet short-term obligations.
• Observe trends in net assets and shareholder funds for capital adequacy as the business scales.
• Monitor creditor balances, especially the long-term creditor of £1,212, to understand repayment terms and impact on cash flow.
• Review director’s financial stewardship and any changes in ownership or control that could affect governance.
• Watch for timely filing of future accounts and confirmation statements to avoid compliance risks.