E TECH LIBRARIES LIMITED

Executive Summary

E TECH LIBRARIES LIMITED presents a high risk profile due to negative net current assets and net liabilities, suggesting liquidity and solvency challenges. While up to date with filings and under sole control of an active director, the company’s financial position and operational scale raise concerns about its capacity to sustain or grow without further capital or restructuring. Further investigation into liabilities’ nature and business viability is advised.

E TECH LIBRARIES LIMITED - Analysis Report

Company Number: 14110954

Analysis Date: 2025-07-20 15:10 UTC

1. Risk Rating: HIGH
   Justification: The company exhibits negative net current assets and net liabilities at the latest year end, indicating potential solvency and liquidity issues. The micro-entity scale and very limited current assets (£4) against liabilities (£119) raise serious concerns about its ability to meet short-term obligations.

2. Key Concerns:

• Negative net current assets of £-115 at 31 May 2024 vs positive £10 the prior year, indicating worsening liquidity.
• Very low absolute current assets (£4) insufficient to cover creditors falling due within one year (£119).
• Absence of employees and minimal operational scale may imply limited business activity and revenue generation.

3. Positive Indicators:

• The company is current with all statutory filings (accounts and confirmation statement) with no overdue submissions.
• Sole director and 100% shareholder appears to have full control and responsibility, potentially enabling quicker decision making.
• Incorporated recently (May 2022), so negative equity could reflect typical startup phase losses rather than long-term distress.

4. Due Diligence Notes:

• Investigate the nature and timing of current liabilities to assess if they are trade creditors, loans, or other obligations that may be negotiated or restructured.
• Review cash flow projections and business plan to understand if the company anticipates improving liquidity or requires external funding.
• Clarify revenue generation and operational status given zero employees and micro-entity size; confirm if the company is trading or in early development.
• Assess background and financial standing of the sole director as principal controller and guarantor of the company.