Company Number: 13163574

Analysis Date: 2025-07-20 14:28 UTC

1. Risk Rating: MEDIUM
   Justification: Eastbrook Logistics Limited shows a positive net asset position with shareholders’ funds increasing year-over-year, indicating a capital buffer. However, the significant increase in current liabilities coupled with a sharp drop in cash reserves by the end of 2023 raises some liquidity concerns. The presence of substantial long-term creditors and provisions also suggests financial obligations that need careful monitoring.

2. Key Concerns:

• Liquidity Pressure: Cash dropped from £1.53M in 2022 to £197K in 2023, while current liabilities increased to £900K, signaling potential cash flow strain.
• Rising Long-Term Debt: Introduction of £1.8M creditors due after one year in 2023, which did not exist previously, may represent increased leverage or financing risk.
• Limited Financial Disclosure: The company files under small company exemptions without audited accounts or an income statement, limiting visibility into profitability and cash flow dynamics.

3. Positive Indicators:

• Growing Net Assets and Shareholders’ Funds: Net assets rose from £925K in 2022 to over £1M in 2023, showing retained earnings or asset growth.
• Substantial Tangible Fixed Assets: Property, plant and equipment valued at approximately £2.8M suggests a solid asset base supporting operations.
• Consistent Director Appointment and Compliance: No overdue filings and consistent director presence indicate sound governance and regulatory compliance.

4. Due Diligence Notes:

• Review the detailed income statement and cash flow information (not filed publicly) to assess profitability and operational cash generation.
• Investigate the nature and terms of the £1.8M long-term creditors to understand debt servicing commitments and refinancing risks.
• Assess debtor aging and collectability given large trade debtor balances to evaluate potential credit risk on receivables.
• Confirm any contingent liabilities or off-balance sheet commitments that may impact solvency.
• Examine management’s strategic plans for addressing liquidity reduction and current liabilities growth.