ECHO MEDIA GROUP LTD

Executive Summary

Echo Media Group Ltd shows a positive trajectory in financial strength with increasing net assets and healthy liquidity, supporting its capacity to meet debt obligations. Credit approval is recommended on a conditional basis, with ongoing monitoring of working capital, creditor levels, and cash flow to mitigate risks associated with the company's small scale and industry challenges.

ECHO MEDIA GROUP LTD - Analysis Report

Company Number: 12411915

Analysis Date: 2025-07-29 16:59 UTC

1. Credit Opinion: CONDITIONAL APPROVAL
   Echo Media Group Ltd demonstrates improving financial stability with positive net assets and growing working capital over recent years. The company has maintained a modest but increasing equity base and positive liquidity, indicating an ability to meet short-term obligations. However, given the small scale of operations (only one employee), limited turnover data, and some increase in short-term liabilities, credit approval should be conditional on continued monitoring of cash flow and trade creditors to ensure ongoing debt servicing capacity.

2. Financial Strength:
   The balance sheet shows a steady increase in net assets from £291 in 2020 to £19,233 in 2024, reflecting accumulated retained earnings and business growth. Fixed assets remain low but stable, primarily intangible goodwill and some tangible assets, which suggests limited capital intensity. Current assets have risen significantly, mainly due to cash increasing from £5,017 in 2020 to £25,574 in 2024. Current liabilities have also increased but the net current assets (working capital) remain healthy at £13,961 as of 2024. Overall, the company maintains a strong equity position relative to liabilities, indicating good financial strength for its size.

3. Cash Flow Assessment:
   Cash balances have grown substantially year-on-year, evidencing good liquidity and cash management. The company’s net current assets are positive and increasing, showing sound working capital management. Trade debtors remain stable, and trade creditors are low, though other creditors and tax liabilities have increased. The presence of sufficient cash reserves to cover short-term liabilities supports confidence in the company’s ability to service debt and meet payment obligations timely.

4. Monitoring Points:

• Monitor the growth in current liabilities, particularly other creditors, to ensure they do not outpace current asset growth.
• Watch ongoing cash flow trends and debtor collection periods to avoid liquidity squeezes.
• Review the impact of any changes in management or ownership structure on financial control.
• Keep an eye on market and industry risks in newspaper publishing, which is subject to digital disruption and changing consumer behavior.
• Confirm that the company continues timely statutory filings and compliance.