Company Number: SC657568

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

1. Risk Rating: LOW
   ECO GEN LIMITED demonstrates a solid financial position with positive net assets and net current assets, no overdue filings, and consistent compliance. The company operates within the micro-entity framework, indicating a small operational scale but financial stability given the available data.

2. Key Concerns:

• Limited Scale and Capital: The share capital is minimal (£1.00), reflecting a very small equity base which could restrict growth or capital raising ability.
• Single Director and Employee: The company relies on one director who is also the sole employee, potentially increasing operational risk due to key person dependency.
• Relatively Low Fixed Assets: Fixed assets are minimal (£10,798 in 2024), which suggests limited physical or long-term operational infrastructure that might affect scaling or collateral availability.

3. Positive Indicators:

• Strong Net Current Assets and Net Assets Growth: Net current assets increased substantially from £4,862 in 2023 to £32,356 in 2024, indicating improved liquidity and working capital management.
• Timely Compliance: Both accounts and confirmation statement are filed on time with no overdue status, reflecting good regulatory compliance and governance.
• Consistent Profit Retention: An increase in shareholders’ funds from £10,414 in 2023 to £43,154 in 2024 shows retained earnings or capital injections strengthening the company’s equity base.

4. Due Diligence Notes:

• Cash Flow and Profitability Details: Micro-entity accounts provide limited insight into profit and loss; reviewing underlying cash flow statements or management accounts would clarify operational sustainability.
• Customer and Contract Base: Understanding the nature of contracts or clients in environmental consulting would help assess revenue stability and market risk.
• Director Background and Capacity: Given the sole director and employee status, further inquiry into the director’s experience and contingency planning for key person risk is advisable.
• Potential Off-Balance Sheet Liabilities: Confirm absence of contingent liabilities or guarantees that may not appear in micro-entity accounts but could impact solvency.