ECOBILLZ LIMITED

Executive Summary

ECOBILLZ LIMITED is a recently established IT services SME with strong liquidity and net current assets, supported by substantial cash reserves. While the company is currently loss-making and has limited trading history, there are no immediate credit concerns, provided close attention is paid to future profitability and cash flow trends. Approval is recommended with ongoing monitoring of financial performance and liquidity.

ECOBILLZ LIMITED - Analysis Report

Company Number: 14688089

Analysis Date: 2025-07-29 15:14 UTC

1. Credit Opinion: APPROVE with caution. ECOBILLZ LIMITED is a newly incorporated private limited company (incorporated February 2023) operating in the IT services sector (SIC 62090). The company shows a strong current asset base, primarily in cash, exceeding current liabilities by a large margin. However, with only one full financial year completed, limited operational history, and a negative retained earnings (P&L reserve), the credit risk is moderate. The company’s ability to generate profits and sustain cash flows remains to be proven. Directors are experienced, and there are no red flags regarding governance or director conduct.

2. Financial Strength: The balance sheet as of 31 March 2024 reflects net assets of £84,472 and shareholders’ funds of £84,472, predominantly from cash (£83,669). The share capital is £100,000, reflecting initial capital injection. Current liabilities are low (£500), resulting in strong net current assets (£84,472). The negative P&L reserve of £15,528 indicates an accumulated loss, typical for a start-up in its first year. No fixed assets are reported, consistent with an asset-light IT services business. Overall, the company is financially solvent but has yet to demonstrate profitability.

3. Cash Flow Assessment: The company’s liquidity position is strong with cash holdings of £83,669 covering all short-term liabilities comfortably. Debtors are minimal (£1,303), indicating limited credit risk from receivables. Net working capital is healthy, supporting day-to-day operations. However, as a start-up with limited operational history, sustained positive cash flow generation should be closely monitored. The absence of audit and abridged accounts limit detailed cash flow analysis.

4. Monitoring Points:

• Profitability trends in subsequent financial periods to assess operational viability.
• Cash flow sustainability as the company transitions from start-up phase.
• Debtor aging and credit control effectiveness to avoid liquidity strain.
• Any material changes in shareholder structure or director appointments.
• Compliance with filing deadlines and accounting standards for transparency.