ECLIPSE FINANCING LIMITED

Executive Summary

ECLIPSE FINANCING LIMITED exhibits strong financial health characterized by increasing profitability, robust equity, and prudent risk management. The company operates with effective governance and risk controls in a challenging lending environment, positioning it well for sustainable growth. Maintaining conservative credit policies and liquidity will be key to navigating future economic uncertainties.

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Company Analysis

This analysis is opinion only and should not be interpreted as financial advice.

ECLIPSE FINANCING LIMITED - Analysis Report

Company Number: 13692994

Analysis Date: 2025-07-20 13:48 UTC

Financial Health Assessment for ECLIPSE FINANCING LIMITED
(Financial year ended 31 December 2023)


1. Financial Health Score: Grade A-

Explanation:
ECLIPSE FINANCING LIMITED demonstrates robust financial health with strong profitability, solid equity base, and prudent risk management practices. The company operates within a well-controlled governance framework and maintains stringent credit and operational risk controls. The slight caution stems from the inherent risks associated with lending businesses, particularly in a volatile economic environment, but the company's conservative approach and strategic oversight mitigate these effectively.


2. Key Vital Signs

Vital Sign Observation Interpretation (Medical Analogy)
Profit for the Year £13.94 million (2022: £2.72 million) A strong pulse showing vigorous profit growth, indicating healthy earnings generation.
Shareholders' Funds (Equity) £260.7 million (2022: £246.8 million) A strong blood pressure — substantial equity cushioning the company against shocks.
Risk Management Conservative credit policy, reduced loan-to-value ratios, stress tested affordability model The immune system is actively fighting potential financial infections, reducing risk exposure.
Funding & Liquidity Risk Active ALCO oversight, hedging against interest rate risk Healthy circulation system ensuring liquidity and funding flow without blockages.
Operational Risk Controls Regular business continuity testing, robust cybersecurity measures Strong protective skin preventing harmful external impacts.
Regulatory Compliance Consumer Duty fully embedded, strong compliance culture The nervous system is alert, ensuring the company responds correctly to regulatory stimuli.
Market Position Leading non-bank specialist finance provider in UK property market The company’s heart is well-positioned in a vital market, with growth potential.

3. Diagnosis: Overall Financial Condition

ECLIPSE FINANCING LIMITED is in a healthy financial condition. The company is profitable with a significant increase in net income year-over-year, reflecting a growing and well-managed business. Its shareholders’ funds have increased, indicating retained earnings and strong capitalisation, providing a buffer against risks.

The business operates within a complex financial services environment but has established rigorous governance structures and committees to monitor and manage risks such as credit risk, liquidity risk, operational risk, and compliance risk. This proactive approach is akin to having a comprehensive health check-up and treatment plan in place.

While the industry is sensitive to economic cycles, particularly property market fluctuations and interest rate changes, the company's cautious credit policies (lower loan-to-value limits, affordability stress testing) and hedging strategies suggest it is well-prepared for adverse conditions.

There are no signs of financial distress such as overdue filings, losses, or negative equity. The company’s strategic report highlights strong operational infrastructure and a forward-looking outlook with growth opportunities, suggesting a positive prognosis.


4. Recommendations: Specific Actions for Financial Wellness Improvement

  • Maintain Conservative Credit Policies: Continue to monitor macroeconomic indicators and adjust loan-to-value and affordability criteria as necessary to avoid overexposure to market downturns.

  • Enhance Liquidity Buffers: While liquidity management is strong, increasing liquid asset buffers could provide additional resilience against unexpected funding market disruptions.

  • Strengthen Stress Testing: Regularly update stress testing models to reflect changing economic scenarios, ensuring readiness for severe but plausible shocks.

  • Invest in Technological Infrastructure: Continue investing in cybersecurity and operational resilience to protect against emerging threats and ensure uninterrupted operations.

  • Sustain Regulatory Engagement: Maintain proactive engagement with regulatory developments, especially around Consumer Duty and data protection, to avoid compliance-related health issues.

  • Focus on Talent and Culture: The company’s strategic report emphasizes staff development and culture; maintaining this focus will ensure a healthy organisational immune system to adapt and thrive.

  • Transparent Communication: Continue transparent reporting to shareholders and stakeholders to build confidence and sustain capital support.



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