EA.UK BUSINESS LTD

Executive Summary

EA.UK BUSINESS LTD is a newly formed micro-entity with negative net assets and insufficient liquidity, reflecting a weak financial position and minimal operational scale. The company’s ability to service debt or credit is currently inadequate, warranting a decline of credit facilities at this stage. Close monitoring of financial progression and capital support is essential for reconsideration.

EA.UK BUSINESS LTD - Analysis Report

Company Number: 14640198

Analysis Date: 2025-07-20 15:46 UTC

1. Credit Opinion: DECLINE
   Ea.uk Business Ltd, incorporated in early 2023, is a micro-entity retail business operating via internet/mail order. Its first-year financials show net liabilities of £135 with current liabilities exceeding current assets. No audit was required or performed. The company has no employees and minimal working capital. The sole director and 100% shareholder holds full control, which concentrates risk. Given the negative net assets, poor liquidity, and lack of operational scale or financial history, the company currently lacks creditworthiness for bank lending or trade credit without significant strengthening of its financial position.

2. Financial Strength:
   The balance sheet reveals net current liabilities of £135 and net assets of negative £135 at the year-end. Total assets of only £89 (presumably cash or receivables) are insufficient to cover short-term creditors of £224. Shareholders’ funds are negative, indicating the company is technically insolvent on a going-concern basis. With zero employees and very limited asset base, the company’s financial foundation is weak and vulnerable.

3. Cash Flow Assessment:
   Working capital is negative by £135, suggesting liquidity constraints. The company’s ability to meet short-term obligations is doubtful without external funding or immediate improvement in cash inflows. No profit and loss data were filed, but the small asset base and zero employees imply minimal business activity to generate cash. The absence of cash reserves or receivables significantly increases liquidity risk.

4. Monitoring Points:

• Track subsequent filing of profit/loss and cash flow statements to assess operational viability.
• Monitor any capital injections or external financing to improve liquidity and net asset position.
• Watch for changes in current liabilities or creditor terms that could pressure liquidity further.
• Observe director actions regarding business development or cost control.
• Review future credit applications carefully for supporting financial improvements or guarantees.