Company Number: 14014404

Analysis Date: 2025-07-29 15:55 UTC

1. Credit Opinion: APPROVE
   E.D.Y.B LIMITED demonstrates a strong financial position with substantial net assets (£5.64M) primarily anchored in tangible fixed assets (freehold property valued at £7.37M). The company shows a positive equity base with increasing profit and loss reserves year-on-year, indicating profitability and retained earnings growth. There are no overdue filings, and the company is active with no signs of distress or liquidation. Directors have significant shareholding and control, aligning management interests with company performance. Given the nature of the company as a holding and property rental business, the asset base supports creditworthiness. The current liabilities are well covered by current assets, and long-term creditors are manageable. Overall, the company appears capable of meeting credit obligations.

2. Financial Strength:

• Total Assets: £7.65M (including £7.37M in tangible fixed assets)
• Net Current Assets (working capital): £297k, up from £208k prior year
• Long-Term Liabilities: £959k (other creditors), deferred tax provision £1.06M
• Net Assets: £5.64M, up from £5.42M prior year, bolstered by revaluation reserve of £4.04M and retained profits of £1.6M
• Minimal share capital (£222) reflects small equity injection; however, strong asset backing compensates.
  The balance sheet is healthy with significant fixed assets and growing equity. The decrease in long-term creditors compared to prior year reduces financial leverage slightly.

3. Cash Flow Assessment:

• Cash at bank increased to £218k from zero last year, improving liquidity.
• Debtors primarily consist of amounts owed by group undertakings (£467k), suggesting intra-group funding or receivables.
• Creditors within one year increased to £404k from £235k but remain covered by current assets.
• Positive net current assets (£297k) indicate sufficient short-term liquidity to cover operational liabilities.
• The company’s cash and receivables position, combined with working capital, supports ongoing operational funding and debt servicing capacity.

4. Monitoring Points:

• Monitor the collectability of intra-group debtor balances to ensure they remain recoverable and do not impair liquidity.
• Observe any fluctuations in property valuations and potential impairment risks, given the heavy reliance on fixed assets.
• Track long-term creditor balances and deferred tax provisions for changes that may impact financial stability.
• Review profitability and cash flow trends in subsequent filings to confirm continued growth and operational cash generation.
• Keep watch on any changes in director shareholdings or governance that might affect company control or financial policy.