E.A. PROPERTIES EMPIRE LTD

Executive Summary

E.A. PROPERTIES EMPIRE LTD is a micro-entity operating in real estate letting with a balance sheet showing negative net assets and significantly increased liabilities. The company’s liquidity is strained, and ongoing viability depends heavily on director support, raising substantial credit risk concerns. Given its current financial position, approval for credit facilities is not recommended without substantial improvement in equity and cash flow metrics.

E.A. PROPERTIES EMPIRE LTD - Analysis Report

Company Number: 13667829

Analysis Date: 2025-07-20 11:35 UTC

1. Credit Opinion: DECLINE
   E.A. PROPERTIES EMPIRE LTD exhibits weak financial health marked by significant long-term liabilities exceeding fixed assets, resulting in negative net assets of £116,530 at the latest year-end. The company’s liquidity position is precarious, with no net current assets reported in 2024 and current liabilities increasing drastically from £35,550 to £582,380 over one year. The reliance on director support to continue as a going concern signals elevated risk. Without stronger equity or cash flow improvements, the company’s ability to service debt and meet commercial obligations is doubtful.

2. Financial Strength:
   The balance sheet reveals a concentration in fixed assets (£466,050) but these are heavily offset by creditors due after more than one year (£582,380), resulting in negative net assets and shareholders’ funds. This indicates financial leverage beyond the company’s equity base and raises concerns about solvency. The absence of net current assets and increased current liabilities further deteriorate the financial position, signaling potential difficulties in meeting short-term obligations.

3. Cash Flow Assessment:
   The company’s current liabilities have swollen substantially without accompanying current assets, resulting in a negative working capital scenario. This implies limited liquidity and potential cash flow constraints. The micro-entity accounts do not disclose turnover or profit figures, but the director’s declaration that the company’s going concern depends on continued personal support highlights fragile operational cash flows and working capital management.

4. Monitoring Points:

• Track changes in net current assets and current liabilities to assess liquidity trends.
• Monitor any improvements in equity or reduction of long-term creditors.
• Review director funding commitments and any external financing arrangements.
• Watch for timely filing of accounts and confirmation statements as indicators of governance quality.
• Observe any material changes in fixed asset valuations or impairments.