UNITED ENGINEERING AND CONTRACTING LTD

Executive Summary

UNITED ENGINEERING AND CONTRACTING LTD exhibits improving financial health with strong net current assets and no overdue filings, supporting a low to medium risk rating. However, the company’s limited operational history and recent director turnover warrant further investigation to ensure governance stability and sustainable operations. Overall, the company appears solvent and compliant but requires additional due diligence given its early stage and sector complexities.

UNITED ENGINEERING AND CONTRACTING LTD - Analysis Report

Company Number: 13195656

Analysis Date: 2025-07-29 15:04 UTC

1. Risk Rating: LOW to MEDIUM
   The company demonstrates positive net assets and net current assets, indicating solvency and liquidity at the balance sheet date. However, the micro-entity scale and limited financial history since incorporation in 2021 suggest a cautious approach.

2. Key Concerns:

• Director Turnover: The recent short tenure and resignation of a director (Yeshpreet Singh) within a few months could indicate governance or operational instability.
• Limited Operational History: Incorporated in 2021 with micro-entity accounts, the company has a short track record which limits financial trend analysis and long-term sustainability assessment.
• Concentrated Control: The sole significant control held by Mrs Rashida Rajkotwalla may present governance risks if key-person dependency exists.

3. Positive Indicators:

• Strong Improvement in Working Capital: Net current assets increased substantially from £1,419 in 2023 to £103,078 in 2024, implying improved liquidity and operational cash flow management.
• Positive Net Assets: Shareholders’ funds rose from £2,424 to £106,344, indicating capital growth and retained earnings accumulation.
• Compliance: All statutory filings including accounts and confirmation statements are up to date with no overdue filings, reflecting good regulatory adherence.
• Consistent Small Scale Operation: The company remains within the micro-entity threshold with minimal employees, which may indicate controlled operational costs.

4. Due Diligence Notes:

• Investigate the reasons for recent director resignations and appointments to assess any underlying operational or governance issues.
• Review detailed cash flow statements or management accounts if available to confirm the sustainability of liquidity improvements.
• Assess the nature of assets and liabilities in detail, particularly current liabilities, to identify any contingent risks or off-balance sheet obligations.
• Understand the company’s business model in real estate and construction sectors and its revenue drivers given multiple SIC codes.
• Confirm whether the shareholder funds increase is due to retained earnings or additional capital injections.