E-INNOVATION (UK) LIMITED
Company number SC422110 · Monitor this company
This analysis was written by an AI from the company's public filings. It may contain errors or omissions and is not financial or professional advice.
Credit Analysis: E-INNOVATION (UK) LIMITED
1. Credit Opinion: DECLINE
Decision: DECLINE with immediate effect
The credit application must be declined on multiple fundamental grounds. Most critically, the company is subject to a Proposal to Strike Off at Companies House, indicating proceedings to remove the entity from the register. This alone renders the company an unacceptable credit risk as it signals either voluntary dissolution by directors or compulsory strike-off for non-compliance—neither of which is compatible with ongoing credit exposure.
Additionally, the company is deeply insolvent with negative net assets of £386,801 as at 31 December 2025, a position that has persisted throughout the entire ten-year financial history available. Total liabilities (£611,003) exceed total assets (£224,202) by nearly three times. The company is balance-sheet insolvent and has been for its entire recorded existence.
The confirmation statement is also overdue, further evidencing administrative non-compliance.
2. Financial Strength: CRITICAL WEAKNESS
Balance Sheet Summary (YE 31 December)
| Metric | 2025 | 2024 | 2023 |
|---|---|---|---|
| Total Assets | £224,202 | £230,370 | £304,562 |
| Total Liabilities | £(611,003) | £(594,319) | £(725,371) |
| Net Assets | £(386,801) | £(363,949) | £(420,809) |
| Shareholders' Funds | £(386,801) | £(363,949) | £(420,809) |
Key Observations:
- Persistent Insolvency: Net assets have been negative every year from 2016–2025. The cumulative P&L reserve deficit is approximately £397,000 against share capital of only £10,215. The business is entirely dependent on creditor support (likely parent company) to continue trading.
- No Equity Buffer: Shareholders' funds represent a deficit of £386,801. There is zero capital cushion to absorb losses or unexpected liabilities.
- Liability Structure: Creditors due within one year (£611,003) vastly exceed current assets (£224,202), creating net current liabilities of £386,801. The company cannot meet its obligations from its own resources.
- Micro-entity Filing: The company files as a micro-entity, meaning minimal financial disclosure. No breakdown of current assets, no cash position reported, no detail on creditor composition. This opacity is a further credit concern.
Parent Company Dependence: The PSC register shows two Danish/Norwegian parent entities (E-Innovation International A/S and E-Innovation A/S) both holding >75% of shares and voting rights. The company's continued existence is clearly dependent on group support, but no formal guarantees are evident from the filed information.
3. Cash Flow Assessment: INADEQUATE
Profit & Loss Summary
| Metric | 2025 | 2024 | 2023 |
|---|---|---|---|
| Turnover | £415,681 | £433,235 | £636,613 |
| Cost of Materials | £(187,846) | £(169,626) | N/A |
| Staff Costs | £(138,592) | £(130,701) | N/A |
| Other Charges | £(112,095) | £(78,719) | N/A |
| Net Profit/(Loss) | £(22,852) | £54,189 | N/A |
Key Observations:
- Revenue Decline: Turnover fell 4% year-on-year (2024 to 2025) and is down 35% from the 2023 peak of £636,613. The business is contracting.
- Return to Loss: After a rare profit of £54,189 in 2024, the company reverted to loss-making in 2025 (£22,852 deficit). The 2024 profit appears to have been an exception rather than a trend—historically the company has accumulated losses approaching £400,000.
- Working Capital Deficit: Net current liabilities of £386,801 mean the company has no working capital facility of its own. Day-to-day operations are funded entirely by creditors, presumably the parent company group.
- Cash Conversion: Without cash flow data (micro-entity filing), we cannot assess operating cash generation. However, the persistent and deepening balance sheet insolvency strongly suggests cash flow inadequacy.
- Sector Context: Operating from Aberdeen in the oil & gas supply chain (ATEX breathing air compressors, nitrogen production), the business is exposed to cyclical energy sector downturns. Revenue volatility aligns with this exposure.
4. Monitoring Points
If any credit relationship were already in place (which should not be extended further), the following would require immediate attention:
| Priority | Metric | Rationale |
|---|---|---|
| CRITICAL | Strike-off status | Monitor Companies House daily. If strike-off proceeds, the company ceases to exist. Any creditor can object to strike-off, but this is not a basis for extending credit. |
| CRITICAL | Overdue confirmation statement | Already overdue as at data date. Further non-compliance likely. |
| HIGH | Parent company support | The only viable path to solvency is group support. Require formal parent company guarantee before any exposure. |
| HIGH | Revenue trajectory | Declining turnover in 2025; monitor for further contraction. |
| MEDIUM | Creditor composition | Understand what proportion of £611k liabilities is intra-group vs. third-party. Intra-group debt may be subordinated but this is not confirmed. |
| MEDIUM | Profitability | 2025 loss reverses the 2024 gain; monitor whether this is a trend or one-off. |
Additional Risk Factors
- Name Changes: Two previous name changes (Air2Work UK Limited → Air2Work Limited → E-Innovation UK Limited) may indicate rebranding or restructuring, but does not alter the underlying insolvency.
- Officer Nationality: Directors include Norwegian nationals, consistent with the Nordic parent ownership. This creates potential jurisdictional complexity in enforcement.
- Sector Concentration: Aberdeen-based oil & gas services businesses face structural headwinds during energy transition and commodity price volatility.