ECOSMART HEAT LIMITED

Executive Summary

Ecosmart Heat Limited is a small, privately controlled UK company operating in wholesale plumbing and heating supplies. Its financials indicate modest but positive net assets and working capital, with no compliance issues noted. However, increasing current liabilities and declining debtors warrant further analysis to ensure liquidity and operational sustainability.

ECOSMART HEAT LIMITED - Analysis Report

Company Number: 13555672

Analysis Date: 2025-07-20 15:29 UTC

1. Risk Rating: MEDIUM
   The company shows positive net current assets and shareholders’ funds, indicating some solvency cushion. However, the relatively small absolute financial scale, modest working capital, and significant increase in current liabilities signal caution. The lack of audit and limited disclosure typical of small companies also constrains comprehensive risk assessment.

2. Key Concerns:

• Current Liabilities Growth: Current liabilities rose from £30,711 in 2023 to £39,073 in 2024, outpacing the increase in current assets, which may pressure liquidity.
• Decrease in Debtors: Trade and other debtors declined notably (£19,920 in 2023 to £9,670 in 2024), which could imply reduced sales or collection challenges affecting cash flow.
• Limited Scale and Resources: With total assets less current liabilities at £5,124 and only one employee, the company may be vulnerable to operational disruptions and limited in capacity to absorb financial shocks.

3. Positive Indicators:

• Positive Net Working Capital: Net current assets remain positive (£4,508 in 2024), indicating the company can meet short-term obligations from current assets.
• Consistent Filing Compliance: No overdue filings for accounts or confirmation statements indicate good regulatory compliance and governance.
• Majority Ownership Control: Wilsher Holdings Limited owns 75-100% of shares, suggesting stable ownership and potential access to parent company support.

4. Due Diligence Notes:

• Investigate the nature and terms of current liabilities, especially “other creditors” which remain high (£26,600), to assess repayment risk and creditor relationships.
• Review the company’s revenue and debtor collection trends to understand the reason behind the halving of trade debtors from 2023 to 2024.
• Confirm cash flow sufficiency given the modest cash balances (£33,911) relative to liabilities and evaluate any off-balance sheet obligations or contingent liabilities.
• Verify director and ownership stability, given one director resigned shortly after incorporation and the company is young (incorporated 2021).