Company Number: 14719034

Analysis Date: 2025-07-29 18:02 UTC

1. Credit Opinion: DECLINE
   EBIZMART LTD is a newly incorporated micro entity with minimal trading history and an operating loss of £362 in its first 13-month period. The company’s net liabilities position (£-362) and negative working capital (£-363) indicate weak financial stability and insufficient current assets to cover short-term liabilities. The very low turnover (£11,747) and lack of profitability raise concerns about the company’s ability to generate sufficient cash flows to meet debt obligations or sustain credit facilities. Given the absence of historical financial strength and operating scale, credit approval is not warranted at this stage.

2. Financial Strength:
   The balance sheet shows a net liabilities position with shareholders’ funds at negative £362. Current liabilities exceed current assets, resulting in negative net current assets. The company holds no fixed assets and has only nominal called-up share capital. The financial structure is very fragile with minimal equity backing and no retained earnings, reflecting the early loss incurred. This weak balance sheet provides limited cushion against trading volatility or economic downturns.

3. Cash Flow Assessment:
   Liquidity is constrained, as current liabilities (£1,094) exceed current assets (£731). The company’s working capital deficit implies potential difficulty meeting short-term obligations without additional funding or cash injections. The small scale of operations and negative operating results suggest cash generation is limited. Without external financial support or a material increase in turnover and profitability, liquidity risk remains high.

4. Monitoring Points:

• Improvement in turnover and profitability trends in subsequent periods.
• Movement towards positive net current assets and net assets.
• Cash flow trends and ability to meet short-term liabilities as they fall due.
• Any additional capital contributions or funding to strengthen equity and liquidity.
• Director’s plans for business development and risk management given current fragile financial status.