EIK0N LIFE LTD

Executive Summary

EIK0N LIFE LTD is a newly formed company showing weak financial metrics, with significant negative working capital and no profitability in its first year. The company is highly dependent on director loans and related party funding, indicating limited capacity to service new credit facilities at this stage. Approval of credit should be deferred until measurable financial improvements and stronger equity support are demonstrated.

EIK0N LIFE LTD - Analysis Report

Company Number: 14761748

Analysis Date: 2025-07-20 18:26 UTC

1. Credit Opinion: DECLINE
   EIK0N LIFE LTD exhibits weak financial health with significant net current liabilities of £6,920 against very minimal current assets (£171). The company is newly incorporated (2023), with only one financial period filed, showing no profits and negative shareholders' funds (£7,020). The balance sheet suggests the company is heavily reliant on director loans (£5,049) and owes more to group undertakings and other creditors. Given this early stage, lack of profitability, and weak liquidity, the company currently lacks the financial capacity to service additional credit risk without significant improvement or external support.

2. Financial Strength
   The company’s financial strength is poor. It holds no fixed assets and minimal current assets primarily consisting of cash (£89) and VAT debtors (£82). Creditors due within one year total £7,091, resulting in a negative working capital position of £6,920. Shareholders' funds are negative, driven by accumulated losses of £7,020. The capital structure depends heavily on director loans and related-party funding, indicating limited equity backing or external investment so far. This exposes the business to high financial risk and limited resilience to downturns.

3. Cash Flow Assessment
   Liquidity is severely constrained. Cash on hand is only £89, insufficient to cover short-term liabilities of £7,091. The company’s working capital deficit and reliance on director loans reflect tight cash flow and limited operational cash generation. The absence of any reported profit or positive cash inflows suggests the business is currently not self-sustaining and may struggle to meet payment obligations without ongoing financial support from its directors or shareholders.

4. Monitoring Points

• Improvement in net current assets and reduction of reliance on director loans.
• Profitability trends and positive cash flow generation in subsequent periods.
• Timely filing of future accounts and confirmation statements to ensure compliance.
• Changes in shareholder funding or external investment that enhance equity and liquidity.
• Management’s ability to convert related party loans into equity or secure third-party financing.