Company Number: 13499423

Analysis Date: 2025-07-29 15:06 UTC

1. Credit Opinion: CONDITIONAL APPROVAL
   Ecometric Ltd is an active private limited company engaged in environmental consulting and related activities. The company shows a modest net asset base of £48k as of July 2024, down from £78k the previous year, indicating recent operational losses. The current liabilities have more than doubled to £176k, significantly increasing short-term obligations. The company maintains positive net current assets (£44.9k), but the sharp increase in creditors and reduced retained earnings reflect some financial strain. Given these factors, credit approval could be considered with conditions such as limits on exposure, monitoring of liquidity, and perhaps personal guarantees or collateral until financial stability improves.

2. Financial Strength
   The balance sheet shows total net assets of £48k, supported by tangible fixed assets (£3.9k) and current assets (£221k), including cash holdings of £93k. However, current liabilities have increased substantially from £74k to £176k within one year. Retained earnings have deteriorated by nearly £30k, signaling losses or write-downs in the latest financial year. The company’s equity remains positive but diminished, implying weakened resilience to financial shocks. The rise in trade and other creditors suggests possible cash flow pressures or extended supplier credit terms. Overall, the financial strength is modest and somewhat weakened compared to the prior year.

3. Cash Flow Assessment
   Cash on hand reduced from £133k to £93k, indicating cash outflows or investment spending. Debtors have increased to £34.7k from £16.5k, which may affect liquidity if collections are slow. Net current assets remain positive, but the sharp rise in current liabilities to £176k is a concern, as it creates tighter working capital conditions. The company’s ability to meet short-term obligations depends on timely conversion of debtors and prudent management of payables. Monitoring the cash conversion cycle and maintaining adequate cash reserves is essential to avoid liquidity crunches.

4. Monitoring Points

• Track quarterly cash flow and working capital trends to ensure liquidity remains sufficient.
• Monitor ageing profiles of debtors and creditors to assess collection effectiveness and payment delays.
• Watch for further declines in retained earnings or net assets that may jeopardize solvency.
• Review management actions to control costs and improve profitability, given recent losses.
• Confirm timely filing of statutory returns to avoid regulatory penalties or reputational risks.