EAST YORKSHIRE RETROFIT SOLUTIONS LTD

Executive Summary

East Yorkshire Retrofit Solutions Ltd is a small private company exhibiting modest growth in net assets but persistent short-term liquidity concerns indicated by negative working capital. The business is currently controlled by a single director/shareholder, which concentrates governance risks, though statutory filings are up to date. Further review of operational cash flows and creditor terms is recommended to better assess financial stability and sustainability.

EAST YORKSHIRE RETROFIT SOLUTIONS LTD - Analysis Report

Company Number: 13455929

Analysis Date: 2025-07-20 17:57 UTC

1. Risk Rating: MEDIUM
   The company shows a positive net asset position with increasing shareholders’ funds but has a consistent net current liability position, indicating short-term liquidity challenges. The business is small and recently incorporated, with limited operational scale and a single director controlling ownership and management.

2. Key Concerns:

• Negative Working Capital: The company has net current liabilities of £4,918 as at 30 June 2024, although improved from £7,735 the previous year, indicating ongoing liquidity constraints that may impair its ability to meet short-term obligations without additional financing.
• Single Director and Owner: The entire shareholding and control rest with one individual, which concentrates operational and governance risk and may impact decision-making and succession planning.
• No Audit and Limited Financial Transparency: The company qualifies for audit exemption and has filed filleted accounts with no profit and loss statement disclosed, limiting visibility into operational profitability and cash flow performance.

3. Positive Indicators:

• Growth in Net Assets: Shareholders’ funds have increased from £1,293 to £3,046 over the last two years, indicating some strengthening of equity and business value.
• Improvement in Current Assets: Current assets increased significantly to £11,674 from £3,969, driven by higher cash balances and stock, which may support operational activity.
• Timely Filing Compliance: Accounts and confirmation statements are up to date with no overdue filings, reflecting good compliance with statutory requirements.

4. Due Diligence Notes:

• Review the company’s detailed cash flow statements and profit and loss accounts, if available, to understand underlying operational profitability and cash generation capacity.
• Investigate the nature of the current liabilities, especially other creditors (£13,934), to assess payment terms and creditor relationships.
• Clarify the business model and revenue consistency given the SIC codes relating to motor vehicle parts retail and maintenance, and confirm market position and customer base sustainability.
• Confirm the absence of any director conduct issues or legal/regulatory challenges associated with the sole director.
• Assess the impact and amortisation of goodwill (£4,800 net) on long-term asset value and any related business acquisitions.