BEST EDO LTD

Executive Summary

BEST EDO LTD shows weak financial footing with net liabilities and negative working capital, indicating liquidity and solvency concerns. Given its micro entity status and limited trading history, the company is not currently creditworthy for additional financing without clear evidence of operational improvement or capital support. Close monitoring of financial progress and cash flow generation is essential before reconsidering credit exposure.

BEST EDO LTD - Analysis Report

Company Number: 14421954

Analysis Date: 2025-07-20 13:21 UTC

1. Credit Opinion: DECLINE
   BEST EDO LTD currently exhibits weak financial health with net liabilities of £4,440 and negative working capital. The company’s balance sheet shows net current liabilities exceeding current assets, indicating potential liquidity challenges. Given its short trading history since incorporation in late 2022, lack of profitability data, and net negative equity, the company is not presently in a position to reliably service new debt or credit facilities without additional financial support or operational improvement.

2. Financial Strength:
   The company is classified as a micro entity with minimal fixed assets and low current assets (£2,243) against higher short-term creditors (£6,683). The resulting net current liabilities of £4,440 and overall negative shareholders’ funds reflect capital erosion and an inability to cover short-term debts from liquid resources. No retained earnings or reserves are reported, and the company is in a net liability position, which undermines financial stability.

3. Cash Flow Assessment:
   The negative net current assets position signals working capital deficiency and potential cash flow constraints. There is no evidence of sufficient cash or liquid assets to meet immediate obligations. With two employees on average, operating expenses likely exert pressure on limited resources. The absence of a profit and loss statement limits visibility on operational cash generation, but the balance sheet implies ongoing liquidity risk.

4. Monitoring Points:

• Improvement in net current assets and movement into positive working capital territory.
• Evidence of profitability and positive cash flows in subsequent accounts filings.
• Reduction of short-term liabilities or restructuring of creditor terms.
• Director’s strategic plans for capital injection or operational turnaround.
• Timely submission of future accounts and confirmation statements to maintain compliance and transparency.