Company Number: 15218411

Analysis Date: 2025-07-29 14:12 UTC

1. Credit Opinion: DECLINE
   Ejar Consulting Ltd is a newly incorporated company with its first financial period ending October 2024. The company reported net current liabilities of £704 and negative shareholders’ funds of £804, indicating a weak balance sheet. Cash on hand is only £498, insufficient to cover current liabilities of £1,202. This poor liquidity position and negative equity raise concerns about the company’s ability to meet short-term obligations and service any credit facilities. Lack of a trading history and minimal operational data further limit confidence. Without evidence of committed revenue streams or capital injection, the credit risk is too high to approve lending at this stage.

2. Financial Strength:
   The company’s balance sheet shows a negative net asset position (£-704 total assets less current liabilities) and negative retained earnings (£-804). No fixed assets or other significant assets were reported. The small amount of cash (£498) is inadequate against current liabilities of £1,202. The negative shareholders’ funds imply the company has either incurred start-up costs or losses exceeding its initial share capital (£100). Overall, financial strength is weak and does not support new credit without substantial improvement or external backing.

3. Cash Flow Assessment:
   Cash resources are minimal, with only £498 available at year-end, significantly less than current liabilities due within a year. This indicates a working capital deficit of £704, suggesting the company may struggle to cover short-term expenses and creditor payments. The absence of an income statement or profit/loss data prevents assessment of operational cash flow, but the negative equity and current liabilities suggest cash flow is insufficient or negative. Immediate liquidity risks exist without additional capital or revenue.

4. Monitoring Points:

• Liquidity improvements: Monitor cash balances vs. current liabilities quarterly to assess working capital management.
• Equity position: Watch for capital injections or profit generation that can restore positive shareholders’ funds.
• Revenue generation: Track turnover and profitability once available to evaluate operational viability.
• Director actions: Given the sole controlling shareholder/director, observe any financial support or strategic changes to reduce risk.
• Filing compliance: Ensure timely submission of future accounts and confirmation statements to maintain up-to-date company information.