Company Number: 13122965

Analysis Date: 2025-07-20 12:12 UTC

1. Credit Opinion: CONDITIONAL APPROVAL EJP Global Ltd is a micro-entity with limited financial scale and a single director/shareholder holding full control. The company’s financials show a small net asset base of £3,744 as of January 2024, which is an improvement from prior years but still minimal. The net current liabilities position of £9,724 in 2024 signals short-term liquidity pressure. The director’s loan of £14,040 (interest-free and repayable on demand) creates some uncertainty about the availability of cash resources. Given the small size, limited operating history since incorporation in 2021, and liquidity constraints, credit approval is possible but should be conditional on updated trading performance and demonstration of improved working capital management.

2. Financial Strength: The company’s balance sheet is very modest with total net assets of only £3,744. Fixed assets increased from zero to £13,468 in 2024, which might indicate some investment in equipment or other resources, possibly supporting growth. However, the company’s current liabilities have grown substantially to £28,960, exceeding current assets of £19,236. This results in a negative net working capital position of nearly £10k, which is a concern for short-term financial resilience. Share capital is nominal at £100, reflecting a very small equity base.

3. Cash Flow Assessment: The negative net current assets suggest potential cash flow pressure. Current liabilities increased sharply in 2024 compared to prior years, without corresponding growth in current assets. The director’s loan of £14,040 is unsecured and interest-free, which may temporarily ease cash demands but is not a substitute for robust operating cash flow. The company’s ability to generate positive cash flow from operations is not evident from the data, and reliance on director advances indicates cash flow fragility. Monitoring cash conversion cycles and working capital efficiency is critical.

4. Monitoring Points:

• Liquidity trends: Monitor monthly cash flow statements to ensure the company can meet short-term obligations.
• Working capital management: Watch for improvement in net current assets and reduction in creditors.
• Profitability and revenue growth: Track income statements to confirm the company is growing and able to support debt service.
• Director loan status: Confirm repayment or formalization of the director’s loan to reduce contingent liabilities.
• Filing and compliance: Maintain timely filing of accounts and confirmation statements to avoid regulatory risk.