EAGLE TREE LTD

Executive Summary

Eagle Tree Ltd is a very young, micro-entity operating in IT consultancy with limited financial history but positive net assets and working capital. The company demonstrates basic financial stability but requires cautious credit exposure due to small scale and declining asset base. Conditional approval is recommended with ongoing monitoring of cash flows and operational growth to ensure continued creditworthiness.

EAGLE TREE LTD - Analysis Report

Company Number: 13884393

Analysis Date: 2025-07-29 20:34 UTC

1. Credit Opinion: CONDITIONAL APPROVAL
   Eagle Tree Ltd is a micro private limited company operating in IT consultancy with a very short trading history since incorporation in 2022. The company shows a modest but improving net asset base (£1,117 as at 31/03/2024, up from £29 the previous year) and positive working capital, indicating some ability to meet short-term obligations. However, current assets have declined significantly from £7,736 to £2,778, and current liabilities decreased from £7,707 to £1,661, suggesting reduced scale of operations or cash holdings. The company is run by a single director who holds full control, which may concentrate management risk but also simplifies decision-making. Given its early stage and limited financial data, credit facilities should be extended cautiously, with conditions such as regular financial updates and limits on exposure.

2. Financial Strength:
   The company’s balance sheet is small but positive in net assets and shareholders’ funds, reflecting retained earnings or initial capital injection. The current ratio remains above 1 (2024 ratio approx. 1.67), indicating sufficient short-term liquidity to cover current liabilities. No fixed assets are reported, consistent with a service-based consultancy model. The low absolute values and shrinkage in current assets require attention, as does the reliance on a single director. No audit has been performed, which is normal for a micro-entity but limits independent financial assurance.

3. Cash Flow Assessment:
   Working capital remains positive (£1,117), supporting operational liquidity. However, the drop in current assets and liabilities suggests reduced operational activity or tighter cash management. The director’s current account shows no outstanding amounts, which implies no related party funding at year-end. The company’s ability to generate cash internally is unproven given the lack of published profit and loss data. Close monitoring of cash inflows and outflows will be required to confirm ongoing viability and debt servicing capacity.

4. Monitoring Points:

• Quarterly or biannual management accounts to track revenue, cash flow, and working capital trends.
• Timely filing of annual accounts and confirmation statements to ensure compliance and transparency.
• Watch for any significant changes in director or ownership structure.
• Monitor any related party transactions or financing arrangements that could affect liquidity.
• Keep an eye on growth in current assets and liabilities for signs of expanding or contracting business operations.