EDGE DECORATING CONTRACTS LTD

Executive Summary

Edge Decorating Contracts Ltd is a newly formed dormant company with no trading activity and minimal financial substance. The lack of financial data and cash flow precludes any credit approval at present. Monitoring future operational activity and financial filings is essential before reconsidering credit facilities.

EDGE DECORATING CONTRACTS LTD - Analysis Report

Company Number: 14461053

Analysis Date: 2025-07-20 17:38 UTC

1. Credit Opinion: DECLINE
   Edge Decorating Contracts Ltd is a recently incorporated private limited company (Nov 2022) classified as dormant, with minimal financial activity and virtually no assets or liabilities reported (£1 net assets). The company has no trading history or revenue to assess repayment capacity. Given the absence of financial performance data and operational activity, the risk of lending is very high. There is no evidence of business cash flow, profitability, or resilience. Consequently, credit approval cannot be recommended at this stage.

2. Financial Strength:
   The balance sheet shows nominal current assets of £1 and net assets of £1, indicating no meaningful capital base or working capital. The company meets the micro-entity filing criteria and is exempt from audit. There are no fixed assets or liabilities disclosed. Shareholders’ funds equal the nominal asset value, reflecting initial share capital only. The financial position is effectively that of a shell company with no trading or financial substance.

3. Cash Flow Assessment:
   No reported cash or working capital beyond £1 current asset. No income or cash flow statements are available due to dormant status. The company cannot demonstrate the ability to generate operating cash flows or service debt obligations. Liquidity is non-existent, and there is no evidence of cash reserves or credit facilities.

4. Monitoring Points:

• Monitor for the company’s transition from dormant to active trading status, including filing of accounts showing revenue and expenses.
• Review future financial statements for profitability, cash flow generation, and working capital improvements.
• Watch for changes in director or ownership that may indicate restructuring or strategic shifts.
• Assess creditworthiness anew once trading accounts are filed and operational history is established.