Company Number: 13930123

Analysis Date: 2025-07-19 12:53 UTC

1. Credit Opinion: DECLINE
   E V D LTD shows significant financial weakness and an adverse capital structure, with net liabilities of £29,124 as of the 2024 year-end, worsening from a net liability position of £9,603 in 2023. The company’s total liabilities due after one year have increased disproportionately (£39,813), which raises concerns about its ability to meet long-term debt obligations. The negative shareholders’ funds indicate erosion of equity, and the company’s very limited fixed assets and current assets relative to liabilities suggest poor financial resilience. Without profitability data, but given the sustained net liability position, the company currently lacks the financial strength to service additional credit facilities reliably.

2. Financial Strength:
   The balance sheet is fragile. Fixed assets are minimal (£1,584), and current assets (£9,819) barely cover short-term liabilities (£714), though net current assets are positive (£9,105) due to low current liabilities reported in the filleted accounts. However, the large amount of creditors falling due after more than one year (£39,813) is concerning and indicates significant long-term obligations that are not supported by adequate asset backing. The company’s negative net assets reflect accumulated losses or capital deficits, indicating poor capital adequacy. Overall, the company is undercapitalized and financially vulnerable.

3. Cash Flow Assessment:
   Current assets have increased from £160 in 2023 to £9,819 in 2024, which is a positive trend, but current liabilities remain low (£714). This suggests some improvement in liquidity, possibly due to better working capital management. However, the absence of profit and loss details and the large long-term liabilities make it difficult to ascertain sustainable cash flow generation. The company’s ability to generate sufficient operating cash flow to service debts is questionable, especially given the negative equity and increasing long-term creditors.

4. Monitoring Points:

• Track net liabilities and shareholder funds for signs of capital restoration or further erosion.
• Monitor the maturity profile and repayment plan of long-term creditors (£39,813) to assess refinancing or default risk.
• Review cash flow statements when available to confirm operational cash generation and debt servicing capacity.
• Observe any changes in director or ownership structure, especially as Waheed Akram holds full control.
• Confirm timely filing of accounts and confirmations to avoid regulatory penalties or warnings.