E-COMMERCE LEGACY LTD

Executive Summary

E-COMMERCE LEGACY LTD is a micro-entity with persistent negative equity and minimal working capital, indicating weak financial health and limited capacity to service debt. The company’s lack of operational scale and negative net assets present high credit risk. Credit facilities should be declined until there is clear evidence of financial improvement or external support.

E-COMMERCE LEGACY LTD - Analysis Report

Company Number: 14027659

Analysis Date: 2025-07-29 12:09 UTC

1. Credit Opinion: DECLINE
   E-COMMERCE LEGACY LTD shows a weak financial position with persistent negative net assets and shareholders’ funds indicating accumulated losses. The net current assets remain negative or very low, reflecting limited working capital and liquidity. The company is a micro-entity with zero employees and minimal reported assets, suggesting limited operational scale. Given these factors, the company’s ability to service debt or meet credit obligations appears severely constrained at this stage. Without evidence of improved profitability, cash flow, or capital injection, credit exposure is high risk.

2. Financial Strength:
   The balance sheet reveals net liabilities of £615 as of April 2025, improved from a deeper deficit of £1,159 in April 2024 but still negative overall. Current liabilities are low (£615), but the lack of current assets means working capital is effectively absent. The company has no fixed assets or other reported reserves and is fully reliant on equity funding by the single director. The negative equity trend over multiple periods signals ongoing losses or insufficient capitalization, undermining financial stability.

3. Cash Flow Assessment:
   No cash or current assets are reported for the latest years, and the company has no employees, implying minimal operating activity or revenue generation. The negative or minimal net current assets suggest liquidity constraints and a potential inability to cover short-term liabilities from existing resources. This leaves the company vulnerable to cash flow shortages and unable to sustain operations or meet creditor demands without external funding.

4. Monitoring Points:

• Track improvements in net current assets and liquidity in next filings.
• Monitor changes in equity and net asset position for signs of recapitalization or profitability.
• Watch for any changes in director or ownership structure that might indicate fresh financial backing.
• Review operational scale and revenue generation, as zero employees and micro size may limit business risk capacity.
• Confirm timely filing of accounts and returns to avoid compliance risks.