ELERICO LTD

Executive Summary

ELERICO LTD is a small, active private limited company with sound liquidity and compliance standing. While its modest scale and declining net assets warrant attention, there are no immediate solvency or regulatory concerns. Further inquiry into its operational viability and profitability is recommended to fully assess sustainability.

ELERICO LTD - Analysis Report

Company Number: 14121871

Analysis Date: 2025-07-29 17:01 UTC

1. Risk Rating: LOW
   The company demonstrates a positive net asset position, healthy net current assets, and timely compliance with filing deadlines. The financials indicate adequate liquidity and no overdue statutory filings, which reduces immediate solvency or regulatory risk.

2. Key Concerns:

• Minimal scale of operations: The company employs only one person and reports modest asset and cash balances, which may indicate limited operational capacity or growth potential.
• Declining net assets: Shareholders' funds decreased from £26,671 in 2023 to £23,701 in 2024, signaling some erosion in retained earnings or capital base.
• Dependence on a single director and shareholder with full control, which may concentrate operational and governance risks.

3. Positive Indicators:

• Positive net current assets (£22,967 in 2024) and cash reserves (£29,636) exceed current liabilities (£6,669), indicating good short-term liquidity.
• No overdue accounts or confirmation statements; next filings are due well in the future, reflecting strong regulatory compliance.
• The company operates in management consultancy, a sector with relatively low fixed asset requirements and potentially scalable service offerings.
• A clear ownership structure with a single individual holding controlling interest simplifies accountability.

4. Due Diligence Notes:

• Investigate the causes and implications of the decline in net assets between 2023 and 2024. Review profit and loss accounts if available to understand profitability and expense drivers.
• Verify the company's revenue streams, client base, and contract stability given the small scale of operations and limited employee count.
• Confirm the absence of director disqualifications or other governance issues given the change in directors within a short period.
• Assess future business plans to understand growth prospects or risks associated with dependency on a single key individual.
• Review any related party transactions or loans that may not appear in abridged accounts but can affect financial health.