ECOGRAN LIMITED

Executive Summary

Ecogran Limited is currently exhibiting high financial risk due to persistent negative net current assets and increasing net liabilities, which could impair its ability to meet short-term obligations. While regulatory compliance appears up to date and governance is intact, the liquidity position raises concerns about operational sustainability. Further investigation into cash flows and creditor terms is recommended to fully assess the company's viability.

ECOGRAN LIMITED - Analysis Report

Company Number: 12805327

Analysis Date: 2025-07-29 20:17 UTC

1. Risk Rating: HIGH
   The company shows significant negative net current assets and net liabilities, indicating solvency concerns and potential inability to meet short-term obligations.

2. Key Concerns:

• Negative net current assets of £27,871 as of 31 August 2024, worsening from £20,101 the prior year, signaling deteriorating liquidity.
• Consistent net liabilities position over the last two financial years, indicating ongoing financial strain.
• Very low current assets (£2,804) relative to current liabilities (£30,675) as of the latest accounts, raising concerns about cash flow and operational sustainability.

3. Positive Indicators:

• The company remains active and compliant with filing deadlines for accounts and confirmation statements, suggesting no regulatory compliance issues.
• Despite financial difficulties, the director has maintained the company since incorporation with no evident disqualifications or governance red flags.
• The company operates in sectors (wholesale of intermediate products and waste material recovery) that may have stable demand, although no revenue data is provided.

4. Due Diligence Notes:

• Investigate the nature and terms of current liabilities to assess risk of imminent creditor action or insolvency proceedings.
• Review cash flow statements and turnover data (not available here) to understand operational cash generation and sustainability.
• Confirm whether the company has any contingent liabilities or off-balance sheet obligations.
• Validate the reason for the sharp decline in current assets from prior years and whether this signals asset disposals or other financial stress.
• Examine director's plans or restructuring efforts in response to the negative working capital position.