E&L PROPERTIES LTD

Executive Summary

E&L PROPERTIES LTD exhibits significant liquidity and working capital deficiencies, with current liabilities substantially exceeding current assets. The company’s nascent stage and lack of operational cash flow render it unsuitable for credit at this time. Careful monitoring of liquidity improvement and operational progress is essential before reconsidering credit facilities.

E&L PROPERTIES LTD - Analysis Report

Company Number: 14594342

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

1. Credit Opinion: DECLINE
   E&L PROPERTIES LTD is a newly incorporated micro-entity with very limited financial history and minimal operational scale (no employees). The balance sheet shows a precarious liquidity position with current liabilities (£226,950) far exceeding current assets (£178), resulting in a negative net current asset position of -£226,772. Although net assets are positive at £18,843 due to fixed assets, the current liabilities raise serious concerns about immediate short-term payment capability. The absence of trading history and cash flow data further limits confidence. Given these weaknesses and lack of demonstrated cash generation, the company is not a suitable candidate for credit facilities at this stage.

2. Financial Strength:
   The fixed assets of £245,615 provide some tangible asset backing, but the company’s current liabilities dwarf its current assets, indicating strained working capital and potential cash flow difficulties. Shareholders’ funds stand at £18,843, reflecting a very low equity base. The company’s micro-entity status and recent incorporation mean it has not yet established a track record or reserves to absorb operating pressures or financial shocks.

3. Cash Flow Assessment:
   Current assets are negligible (£178), suggesting very limited liquid resources. With current liabilities exceeding £226k, the company likely faces immediate liquidity risk. There is no evidence of operating cash flow or income generation to support debt servicing or creditor payments. This mismatch implies the company may rely heavily on external funding or shareholder support to meet short-term obligations.

4. Monitoring Points:

• Liquidity trends and working capital improvements in subsequent accounts
• Evidence of revenue generation or cash inflows to support liabilities
• Changes in capital structure or additional equity injections
• Management actions addressing short-term creditor exposure
• Director conduct and governance practices given concentrated control