ECO ENERGY TRADING LTD

Executive Summary

Eco Energy Trading Ltd demonstrates a low risk profile with improving solvency metrics and compliance adherence, underpinned by a stable ownership and operational setup. While the company operates at a small scale, its financial position shows positive trends in liquidity and equity. Further scrutiny of liability structure and operational sustainability is recommended to fully assess ongoing financial health.

ECO ENERGY TRADING LTD - Analysis Report

Company Number: 14015337

Analysis Date: 2025-07-29 15:56 UTC

1. Risk Rating: LOW
   Eco Energy Trading Ltd shows a positive solvency position with net current assets and shareholders funds increasing year-on-year. The company is current on filings and operating within micro-entity reporting standards, indicating compliance and transparency. There are no indications of liquidation or director disqualification.

2. Key Concerns:

• Modest scale of operations with only 2 employees and micro-entity classification, which may imply limited operational diversification and scale.
• Relatively low fixed asset base and reliance on current assets could pose a challenge if liquidity is impaired or creditors demand payment.
• The primary director and sole significant controller concentration with 75-100% ownership may present governance concentration risk.

3. Positive Indicators:

• Consistent improvement in net current assets from £882 to £27,999 and shareholders funds from £51,970 to £68,869 over two years reflects strengthening equity and liquidity.
• No overdue filings and timely submission of accounts and confirmation statements demonstrate good regulatory compliance.
• The business appears operationally stable with an increase in average employees from 0 to 2 in the latest year, indicating some growth or operational scaling.

4. Due Diligence Notes:

• Verify the nature of current liabilities and their maturity profile to assess any short-term repayment pressures in detail.
• Investigate the business model and revenue streams given the SIC code "Other business support service activities not elsewhere classified" to understand sustainability and market positioning.
• Confirm absence of contingent liabilities or off-balance sheet commitments not disclosed in the micro-entity accounts.
• Review director background and related party transactions given the concentrated control to identify any governance or conflict of interest issues.