Company Number: 13951124

Analysis Date: 2025-07-20 15:17 UTC

1. Credit Opinion: CONDITIONAL APPROVAL
   Ecomp Solutions Ltd demonstrates recent improvement in financial health with positive net current assets and net assets as of 31 March 2024. However, the company is very young (incorporated in 2022) and has a minimal operating history with limited financial data. The shift from negative net assets in 2023 to positive in 2024, driven primarily by a significant increase in cash and elimination of debtors, indicates improving liquidity and management actions to strengthen working capital. Approval is recommended subject to continued monitoring of operational cash flows and profitability to confirm sustainable debt servicing capacity.

2. Financial Strength:
   The company’s balance sheet has improved markedly over the latest reporting period. Net current assets increased to £4,173 from a prior deficit of £3,815, driven by cash increasing from £38 to £4,527 and elimination of debtors (£2,540 in 2023 to zero in 2024). Current liabilities have been sharply reduced from £6,393 to £354, reflecting improved short-term solvency. Shareholders’ funds are positive at £4,173, recovering from negative equity of £3,815 the prior year. The absence of fixed assets or long-term liabilities suggests a very small-scale operation with limited asset backing but also limited financial risk exposure.

3. Cash Flow Assessment:
   Cash position has improved significantly, indicating the company has enhanced liquidity to meet short-term obligations. The elimination of debtors and reduction in creditors support a stronger working capital base. However, there is limited detail on operating cash flow or profitability, and only one employee is reported, which may constrain business scalability and cash generation. Cash flow sustainability should be confirmed by reviewing management accounts or cash flow forecasts before extending significant credit.

4. Monitoring Points:

• Continued growth in cash generation and maintenance of positive net current assets.
• Profitability trends and whether the company moves from reliance on capital injections to operational cash generation.
• Changes in creditor and debtor balances that could impact liquidity.
• Management of working capital and any upcoming capital expenditure or financing needs.
• Director changes and related-party transactions given key shareholders are also directors.