ED4 GRAPHICS LTD

Executive Summary

ED4 GRAPHICS LTD demonstrates significant financial distress with persistent negative net assets and a current asset base insufficient to cover liabilities, indicating a high risk of insolvency and liquidity challenges. While statutory filings are up to date and the company's control structure is stable, the lack of operational scale and employee base raises concerns about its ability to sustain ongoing business activities. Further detailed financial and operational due diligence is recommended to clarify the company's viability and risk exposure.

ED4 GRAPHICS LTD - Analysis Report

Company Number: 12436913

Analysis Date: 2025-07-20 16:17 UTC

1. Risk Rating: HIGH
   The company shows persistent negative net assets (shareholders' funds) indicating insolvency. Current liabilities significantly exceed current assets, suggesting liquidity issues. The micro-entity size and lack of employees imply limited operational scale, raising concerns about sustainability.

2. Key Concerns:

• Negative net assets of £6,161 in 2024 (and similar in prior years) indicate that liabilities exceed assets, which is a solvency red flag.
• Current liabilities (£14,162) far exceed current assets (£201), implying potential difficulty meeting short-term obligations.
• No employees and minimal turnover data suggest limited operational activity, raising concerns about business viability and cash flow generation.

3. Positive Indicators:

• The company is current on all filing obligations (accounts and confirmation statement), indicating compliance with statutory requirements.
• The sole director and PSC is stable, with consistent control since incorporation, which may support operational continuity.
• Fixed assets have slightly increased from £7,500 to £7,800, showing some investment or asset retention.

4. Due Diligence Notes:

• Investigate the nature and timing of the significant current liabilities to assess if they are trade creditors, loans, or other obligations.
• Review cash flow statements or bank statements (if available) to understand liquidity management and ability to meet short-term debts.
• Assess the company’s income generation and revenue streams given zero reported employees and very low current assets.
• Confirm whether any related party transactions or director loans contribute to the liabilities or equity structure.
• Explore any contingent liabilities or off-balance-sheet commitments not reflected in these accounts.