ECO4HOME GRANTS LTD

Executive Summary

ECO4HOME GRANTS LTD, a micro private limited company, displays very limited financial substance with negligible net assets and working capital. The company’s inability to generate meaningful cash flow or build equity undermines its capacity to service credit facilities. Consequently, the credit recommendation is to decline due to high risk and insufficient financial resilience.

ECO4HOME GRANTS LTD - Analysis Report

Company Number: 13641591

Analysis Date: 2025-07-20 17:35 UTC

1. Credit Opinion: DECLINE
   ECO4HOME GRANTS LTD presents very limited financial strength and operational scale. The company is micro-sized with minimal current assets (£291) and nearly equal current liabilities (£290), resulting in negligible net working capital (£1). The absence of employees and the lack of financial growth or profit indicators raise concerns about the company's ability to service any debt or meet credit obligations reliably. Additionally, the business has no significant asset base or reserves to cushion financial stress. Given these factors, the risk of default or non-performance is high, leading to a declined credit recommendation.

2. Financial Strength:
   The balance sheet is minimalistic and static across two years with current assets and liabilities almost balanced, leaving no margin for operational flexibility. Shareholders’ funds stand at only £1, indicating negligible equity capital. No fixed assets or retained earnings are reported, which implies the company has no tangible collateral or financial buffer. Given the company’s micro entity status and no growth in net assets, the financial strength is very weak.

3. Cash Flow Assessment:
   With current assets (£291) almost offset by current liabilities (£290), cash flow liquidity is essentially neutral. The company’s working capital position is marginally positive by £1, indicating extremely tight liquidity. This leaves no room for working capital fluctuations or unexpected expenses. The absence of employees suggests limited operational activity, which may reduce cash outflows but also limits revenue generation capacity. Overall, liquidity is inadequate to sustain credit exposure.

4. Monitoring Points:

• Monitor any significant changes in current assets/liabilities that could impact liquidity.
• Watch for improvements in equity or accumulation of retained earnings, signaling operational progress.
• Track director’s business activity and whether any trading or revenue generation emerges.
• Confirm timely filing of accounts and statutory returns to avoid compliance issues.
• Review any external financing arrangements or guarantees that could affect credit risk.