Company Number: 13136115

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

1. Risk Rating: HIGH
   The company exhibits significant solvency and liquidity concerns, with net liabilities worsening over three years and current liabilities far exceeding current assets. This financial distress raises a high risk for investors.

2. Key Concerns:

• Severe Negative Net Assets: The company reported net liabilities of £89,293 at 31 January 2024, deteriorating from £36,884 the prior year, indicating ongoing losses eroding equity.
• Negative Working Capital: Current liabilities (£110,072) greatly exceed current assets (£1,481), resulting in a net current liability position of £108,591, signaling potential cash flow problems and difficulty meeting short-term obligations.
• Related Party Debt: A significant creditor balance (£109,320) is owed to the controlling party, Ecochempro (International) Limited, suggesting reliance on related party funding which may not be sustainable or on commercial terms.

3. Positive Indicators:

• Compliance with Filings: Neither accounts nor confirmation statements are overdue; the company remains compliant with statutory filing deadlines.
• Stable Fixed Assets: Tangible fixed assets around £19,000 have been maintained, indicating some capital investment or asset base supporting operations.
• Experienced Management Team: Multiple directors including a founder and CEO are appointed, suggesting an established governance structure.

4. Due Diligence Notes:

• Review the nature and terms of the related party debt to Ecochempro (International) Limited, including repayment schedules and any guarantees.
• Investigate the company’s cash flow forecasts and plans to address the substantial working capital deficit and negative net assets.
• Examine operational performance and revenue trends since turnover figures are not disclosed here, to assess if the business model is sustainable going forward.
• Confirm whether there are any contingent liabilities or off-balance sheet risks.
• Assess director and shareholder commitment to recapitalisation or restructuring plans given the current financial distress.