E B & P LIMITED

Executive Summary

E B & P LIMITED shows early-stage growth with improving net assets but persistent negative working capital, posing moderate short-term liquidity risk. Conditional credit approval is recommended with careful monitoring of cash flow and current liabilities to ensure ongoing ability to meet obligations. The company’s financial position remains modest but stable for its size and age.

E B & P LIMITED - Analysis Report

Company Number: 14109416

Analysis Date: 2025-07-29 13:06 UTC

1. Credit Opinion: CONDITIONAL APPROVAL
   E B & P LIMITED demonstrates modest but improving net asset position and shareholder funds, reflecting growth since incorporation in 2022. However, the company consistently shows net current liabilities (negative working capital) and a micro-entity scale which limits financial flexibility. Credit risk is moderate given the negative working capital but manageable if short-term liabilities are controlled and cash flow remains stable. Approval is conditional on continued monitoring of liquidity and operational cash flow, with caution advised due to limited scale and working capital constraints.

2. Financial Strength:
   The balance sheet shows total net assets of £30,667 as of May 2024, up from £10,721 in the prior year, indicating growth in equity base. Fixed assets are stable around £60k, while current assets nearly doubled from £51k to £99k, evidencing improved asset base. However, current liabilities remain high at £130k, resulting in net current liabilities of approximately £31k, though improved from prior year’s £49k deficit. The company’s capital structure is entirely equity funded with no indication of long-term debt, which is positive. Overall, financial strength is modest with a thin equity buffer relative to short-term obligations.

3. Cash Flow Assessment:
   Working capital is negative, raising concerns about the company’s ability to meet short-term liabilities from current assets alone. The increase in current assets is encouraging, but current liabilities remain significantly higher. The absence of audit and limited disclosures mean cash flow from operations is unclear. The small employee base (average 2 employees) suggests low fixed overheads, which may help preserve cash. Adequate liquidity management will be crucial to avoid reliance on external funding or risk of default on short-term obligations.

4. Monitoring Points:

• Track quarterly or interim cash flow statements to ensure operating cash flow supports current liabilities.
• Monitor changes in current liabilities closely for any increasing short-term debt or supplier payables.
• Review any new financings or shareholder injections to support working capital.
• Watch for timely filing of accounts and statutory returns as indicators of management control and compliance.
• Observe any changes in director composition or PSC structure that could impact governance or control.