ECO GREENER HOME LIMITED

Executive Summary

ECO Greener Home Limited presents a high-risk profile due to significant and growing negative net assets and a large working capital deficit, indicating potential solvency and liquidity challenges. While regulatory compliance is up to date and governance appears stable, the company’s small scale and financial losses warrant comprehensive due diligence focused on cash flow, profitability, and operational viability before considering investment.

ECO GREENER HOME LIMITED - Analysis Report

Company Number: 13075431

Analysis Date: 2025-07-20 17:48 UTC

1. Risk Rating: HIGH
   The company exhibits significant solvency and liquidity concerns, reflected in consistent and worsening negative net assets and large current liabilities exceeding current assets by a substantial margin.

2. Key Concerns:

• Negative Net Assets and Shareholders’ Funds: The net assets position has deteriorated from -£13,043 in 2022 to -£39,287 in 2023, indicating accumulated losses eroding equity and a potentially insolvent balance sheet.
• Severe Working Capital Deficit: Net current liabilities increased from -£12,493 to -£40,302, suggesting the company may struggle to meet short-term obligations as current liabilities considerably exceed current assets.
• Very Small Scale and Limited Financial Data: As a micro-entity with minimal share capital (£3), only one employee, and limited fixed assets, the company’s operational scale is modest, heightening vulnerability to financial stress without clear evidence of strong cash inflows.

3. Positive Indicators:

• No Overdue Filings: The company’s accounts and confirmation statement filings are current, indicating compliance with regulatory requirements.
• Stable Director and PSC Structure: Directors and persons with significant control are established with no adverse records noted, implying governance continuity.
• No Indication of Formal Insolvency Proceedings: The company is active and not in liquidation or administration, suggesting it is currently operational.

4. Due Diligence Notes:

• Examine Profit and Loss History: Detailed profit and loss statements are not provided; reviewing these would clarify the cause of losses and whether they are operational or exceptional.
• Assess Cash Flow and Funding Sources: Investigate cash flow statements and any external financing or shareholder support to understand liquidity management and business viability.
• Review Business Model and Market Position: Given the SIC code for “Other construction installation,” determine the company’s client base, contract pipeline, and competitive positioning to evaluate operational sustainability.
• Investigate Contingent Liabilities: The company disclosed guarantees and commitments (£3,177) that may impact future cash flows; further details are necessary.
• Confirm Related Party Transactions and Director Loans: To identify any off-balance-sheet exposures or financial support arrangements.