UNIFORM ENGINEERING LIMITED

Executive Summary

Uniform Engineering Limited is an active private company with compliant filing status and reasonable liquidity supported by improved cash reserves. However, the significant decline in net assets and prior intercompany write-offs raise concerns about operational and group financial stability. Further analysis of profitability and related party transactions is recommended to clarify solvency and ongoing viability risks.

UNIFORM ENGINEERING LIMITED - Analysis Report

Company Number: 13117156

Analysis Date: 2025-07-20 11:03 UTC

1. Risk Rating: MEDIUM
   The company shows a moderate risk profile. While it is active, compliant with filing deadlines, and reports positive net assets, there is a notable decline in net assets year-on-year and material intercompany balances written off. The working capital position appears adequate but some financial data suggest potential operational and solvency concerns that warrant closer scrutiny.

2. Key Concerns:

• Significant reduction in net assets from £307k (FY 2023) to £117k (FY 2024), indicating profit erosion or losses impacting shareholder equity.
• Large intercompany balances (£831k) written off in prior year adjustment, which may suggest prior intra-group financial issues or unrecoverable receivables affecting asset quality.
• Declining current assets and debtors year-on-year, potentially signaling reduced sales or collection challenges, despite a relatively strong cash balance.

3. Positive Indicators:

• The company is current with statutory filings, including accounts and confirmation statements, indicating sound compliance and governance practices.
• Cash balances have improved substantially from £5k to over £71k, supporting short-term liquidity needs.
• Low share capital but positive net assets and shareholders’ funds suggest retained earnings or reserves underpinning financial stability.
• Active website presence and operational status in a well-defined manufacturing SIC code (fabricated metal products) support business continuity.

4. Due Diligence Notes:

• Investigate the nature and cause of the prior year intercompany balance write-offs to understand potential related party risks or financial distress within group entities.
• Review profit and loss details (absent from abridged accounts) to assess revenue trends, cost structures, and profitability drivers over time.
• Examine debtor aging and credit control effectiveness given the sizable debtor balances relative to turnover and cash position.
• Confirm the impact of director changes, especially recent resignations and appointments, on operational continuity and management quality.
• Assess deferred tax liability disclosures and any contingent liabilities linked to provisions to evaluate hidden financial risks.