Company Number: 14062292

Analysis Date: 2025-07-19 12:42 UTC

1. Credit Opinion: DECLINE
   ECOSIMPLE LTD shows a weak financial position with net current liabilities of £1,395 as of April 2024, reversing from a small positive net asset base in prior years. The company is categorized as a micro-entity with minimal asset base and limited financial history, being incorporated in 2022. The inability to maintain positive working capital suggests cash flow stress and limited capacity to service debt. Given the negative net assets and no significant fixed assets or reserves, the risk of default is elevated. Without evidence of improving financial strength or cash generation, extending credit is not advisable.

2. Financial Strength:
   The balance sheet reveals a deterioration from net assets of £1 in 2023 to net liabilities of £1,395 in 2024. Current liabilities exceed current assets, resulting in negative net current assets. The company holds minimal cash (only £1 reported in 2023, no explicit cash figure in 2024 but likely very low), and no fixed assets are reported. Shareholders' funds mirror the negative net asset position. This fragile capital structure and absence of tangible assets undermine financial resilience.

3. Cash Flow Assessment:
   With only one employee and negligible cash reserves, liquidity appears very constrained. Negative working capital indicates that short-term obligations exceed readily available assets, creating a risk of payment delays or defaults. The limited scale of operations and absence of cash inflows reported implies a weak cash conversion cycle and poor operational cash flow. No clear indication of external funding or credit lines is evident.

4. Monitoring Points:

• Improvement in net current assets and reversal to positive net asset position
• Generation of consistent positive operating cash flow
• Increase in cash balances to cover short-term liabilities
• Filing of next accounts and confirmation statements on time to monitor ongoing compliance
• Any changes in director or ownership that may affect governance or financial strategy