EDPAT UK LTD

Executive Summary

EDPAT UK LTD is a recently incorporated micro-entity with a very modest financial base and limited operational history. The company maintains positive but minimal net assets and working capital, indicating the ability to meet short-term obligations but with limited financial resilience. Credit approval is recommended only on a conditional basis with low exposure and close liquidity monitoring.

EDPAT UK LTD - Analysis Report

Company Number: 13885397

Analysis Date: 2025-07-29 14:26 UTC

1. Credit Opinion: CONDITIONAL APPROVAL
   EDPAT UK LTD is a micro-entity with a very modest balance sheet and limited financial data due to its recent incorporation in 2022. The company shows positive net current assets and net assets, but at a very low absolute level (£104 at FY 2025 year-end). There is no evidence of significant liabilities or financial distress. However, the small scale and limited financial history restrict confidence in its ability to service larger credit facilities. Approval could be considered for low-value credit lines or trade facilities with close monitoring.

2. Financial Strength:
   The company’s net assets declined from £180 in FY 2024 to £104 in FY 2025, indicating a slight depletion of equity though still positive. Current assets dropped sharply from £1,130 to £117, while current liabilities reduced more significantly from £950 to £13. This results in a stable but very small net current asset position (£104) that reflects minimal working capital. The company operates with just two employees and minimal fixed or intangible assets. Overall, the balance sheet is solvent but very thinly capitalized.

3. Cash Flow Assessment:
   Current assets largely consist of cash or receivables, but the steep decrease in current assets year-on-year suggests possible cash flow constraints or asset disposals. The near elimination of current liabilities improves the short-term liquidity profile, but the very low absolute cash or liquid asset base limits the cushion available for unexpected expenses or downturns. Working capital is positive but minimal, requiring careful cash management for ongoing operations. No audit or detailed cash flow statements were provided, so cash flow visibility is limited.

4. Monitoring Points:

• Monitor cash balances and liquidity especially given the sharp decline in current assets.
• Track net asset movement to identify if equity erosion continues.
• Review upcoming filings for any changes in liabilities or capital structure.
• Assess operational performance and revenue generation trends as they become available to ensure the company can maintain positive working capital.
• Monitor director and PSC involvement for any changes that might affect governance or control.