EC WATERS LIMITED

Executive Summary

EC WATERS LIMITED is a micro-entity active in the food services sector with compliant filings and positive net assets. However, a significant decline in net current assets and a rise in current liabilities in the most recent year warrant caution. Further inquiry into cash flow and operational performance is recommended to assess ongoing financial stability and risk.

EC WATERS LIMITED - Analysis Report

Company Number: 13455140

Analysis Date: 2025-07-20 18:15 UTC

1. Risk Rating: MEDIUM
   The company's financials show a notable decline in net current assets and net assets over the latest year, dropping from £36,160 in 2023 to £11,386 in 2024. While still positive, this reduction raises moderate concern regarding solvency and liquidity, especially given the micro-entity scale and limited financial buffer.

2. Key Concerns:

• Significant deterioration in net current assets and net assets within one year, suggesting potential cash flow or operational challenges.
• Increase in current liabilities from £6,284 in 2023 to £26,781 in 2024, which could pressure short-term liquidity.
• Limited scale of operations (micro-entity) with only 3 employees, which may constrain operational resilience and growth prospects.

3. Positive Indicators:

• The company remains active and compliant with filing deadlines, with no overdue accounts or confirmation statements.
• Positive net current assets and net assets indicate that, despite the decline, the company can currently meet its short-term obligations.
• No off-balance sheet liabilities disclosed, suggesting transparency and no hidden financial risks.

4. Due Diligence Notes:

• Investigate reasons behind the sharp increase in current liabilities and corresponding reduction in net assets during the latest financial year.
• Review cash flow statements and profit and loss accounts (if available) for insights into operational performance and underlying causes of financial changes.
• Confirm the nature of the company's contracts and revenue streams within the "Other food services" SIC classification to assess sustainability.
• Evaluate management capabilities and strategy, considering the small team size and potential impact on business continuity.