VERITAS ENGINEERING MANAGEMENT LIMITED

Executive Summary

Veritas Engineering Management Limited is a newly formed micro-entity with a sound but very limited financial base. Its current liquidity and equity position support a low level of credit exposure. Approval is recommended with conservative limits and regular financial monitoring to manage the risks associated with its early stage and sole director control.

VERITAS ENGINEERING MANAGEMENT LIMITED - Analysis Report

Company Number: 14810751

Analysis Date: 2025-07-29 13:46 UTC

1. Credit Opinion: APPROVE
   Veritas Engineering Management Limited is a newly incorporated small private limited company with limited financial history but a clean status and no overdue filings. The modest net current assets and positive shareholders’ funds indicate a stable equity base. The single director and 100% shareholder, Mr Richard Gilson, appears to have full control and responsibility, which simplifies governance but concentrates risk. Given the small scale and early stage, the company currently presents low credit risk, assuming loan amounts are commensurate with its size and cash flow. Approval is recommended with standard monitoring and limits aligned to its modest asset base.

2. Financial Strength:
   The company’s balance sheet as of 30 April 2024 shows total current assets of £3,570 cash, with current liabilities of £2,252, resulting in net current assets (working capital) of £1,318. Shareholders’ funds equal £1,318, comprising £100 share capital and £1,218 retained earnings or reserves. There are no fixed assets reported, indicating the company may rely on intangible assets or human capital. Overall, the financial position is stable but very modest, consistent with a micro entity in its first year of trading.

3. Cash Flow Assessment:
   Cash on hand is £3,570, exceeding current liabilities of £2,252, which suggests adequate short-term liquidity to meet immediate obligations. The positive net current assets indicate working capital sufficiency. However, the company employs only one person (the director), which likely keeps overheads low. Without detailed profit and loss data, cash flow sustainability depends on continued contract wins and careful management of payables/receivables. The lack of significant external debt reduces refinancing risk.

4. Monitoring Points:

• Monitor cash flow trends and liquidity ratios as additional accounts become available to ensure ongoing ability to service debt.
• Review any increases in liabilities or changes in working capital that could strain liquidity.
• Observe director’s management decisions and any changes in ownership or governance due to the single-person control structure.
• Watch for expansion or capital investment plans that may impact financial leverage or cash reserves.