EG&C LIMITED

Executive Summary

EG&C LIMITED is an early-stage micro-entity in construction with a marginally negative net asset and working capital position. While currently showing tight liquidity, the small scale and founder control suggest potential for recovery. Credit approval should be conditional on demonstrated improvement in liquidity and cash flow under the new director’s stewardship, with close ongoing monitoring of financial metrics.

EG&C LIMITED - Analysis Report

Company Number: 14766908

Analysis Date: 2025-07-20 15:38 UTC

1. Credit Opinion: CONDITIONAL APPROVAL
   EG&C LIMITED is a newly incorporated micro-entity operating in the construction sector with limited financial history (first year of accounts). The company currently shows a marginally negative net asset position (£-746) and a slight working capital deficit (£-846), indicating tight liquidity. However, the small scale and micro-entity status suggest limited operational complexity. The company’s ability to service debt at this stage is uncertain but potentially manageable with close monitoring. Credit approval should be conditional upon confirmation of improved liquidity and positive cash flow in subsequent periods, as well as stability under new management following recent director changes.

2. Financial Strength:
   The balance sheet reflects a net liability position of £746, driven by current liabilities slightly exceeding current assets. Fixed assets are not reported, which is typical for a service-oriented or early-stage construction firm operating with minimal capital investment. Shareholders’ funds are negative, indicating initial losses or start-up costs not yet recovered. The company’s micro size and single employee base limit financial complexity but also suggest limited financial buffer to absorb shocks.

3. Cash Flow Assessment:
   Current assets of £63,588 are largely likely to be cash or receivables, while current liabilities stand at £64,434, resulting in a net current liability. This small working capital deficit implies the company may face short-term liquidity constraints. Given no off-balance sheet liabilities and minimal employee costs (1 employee), cash flow pressures may be manageable if receivables convert promptly and costs are controlled. However, the absence of a positive net asset base warrants careful cash flow forecasting to ensure ongoing operational viability.

4. Monitoring Points:

• Improvement in net current assets and net asset position in next accounting periods.
• Cash flow from operations, especially receivable collections and creditor management.
• Impact of director change in November 2024 on strategic and financial management.
• Timely filing of future accounts and confirmation statements to maintain regulatory compliance.
• Any material contracts or credit exposures that could strain liquidity or increase financial risk.