Company Number: 13109785

Analysis Date: 2025-07-20 14:11 UTC

1. Credit Opinion: DECLINE
   EBABYCO LTD shows ongoing negative net current assets and net liabilities increasing from £1,059 (2023) to £1,944 (2024), despite minimal current assets (£1). This indicates the company is insolvent on a balance sheet basis. The lack of cash or working capital and increasing short-term creditors point to poor liquidity and an inability to meet its current obligations without external support. The company is reliant on director support as noted in the accounts, which raises concern over independent repayment ability and business sustainability without continual infusion of funds. No audit has been performed, limiting transparency. Given the micro entity status and minimal trading history since incorporation in 2021, the financial trajectory is negative with no evidence of profitability or cash flow generation. These factors combined present a high credit risk.

2. Financial Strength: WEAK
   The balance sheet is under severe strain with current liabilities of £1,945 against current assets of only £1, yielding net current liabilities of £1,944 as of January 2024. Shareholders' funds are negative and deteriorated by nearly £900 year on year. The company holds no fixed assets and only nominal share capital (£1). The increasing deficit indicates accumulated losses or creditor funding. This weak financial structure implies minimal capital buffer to absorb shocks or support debt service. The director’s commitment to ongoing support is the only factor maintaining the going concern assumption.

3. Cash Flow Assessment: POOR
   Current assets reported are nominal (£1), with no indication of cash or liquid assets available to cover immediate liabilities. The current liabilities have grown significantly year on year, suggesting the company depends heavily on trade creditors or other short-term funding. The absence of working capital and no disclosed cash inflows leads to a conclusion of poor liquidity, increasing the risk of default on any credit facility. The director’s support is crucial but not a reliable substitute for sound cash flow.

4. Monitoring Points:

• Monitor director funding support and any capital injections.
• Track changes in current liabilities and creditor ageing to assess payment behavior.
• Review upcoming filed accounts and cash flow statements for improvement or further deterioration.
• Watch for any late filings or changes in company status that could signal distress.
• Evaluate any new trading activity or contracts that may generate sustainable cash flow.