Company Number: 14470475

Analysis Date: 2025-07-20 11:52 UTC

1. Credit Opinion: CONDITIONAL APPROVAL
   Elis Care Ltd is a very recently incorporated private limited company (since Nov 2022) operating in social care activities without accommodation. The company’s latest accounts show a modest positive net asset position (£5,188) and net current assets (£5,188) with no audit requirement due to its small size. However, liquidity is weak with only £17 cash on hand and a large proportion of current assets tied in debtors (£45,565). The company relies heavily on debtor collections to meet short-term liabilities (£40,394). The director is also the sole significant controller, which concentrates management risk. Credit approval is recommended with conditions such as monitoring debtor collection efficiency and verifying ongoing profitability and cash generation before increasing credit exposure.

2. Financial Strength:

• Net assets increased from £2,956 in 2023 to £5,188 in 2024 indicating limited but positive equity growth.
• The balance sheet shows only current assets and liabilities, with no fixed assets recorded, typical for a service provider in social care.
• Shareholders’ funds are minimal, suggesting limited capitalization and a small operating scale.
• The company’s financial structure is fragile, with working capital barely positive and highly dependent on timely collection of trade receivables.

3. Cash Flow Assessment:

• Cash at bank has dropped sharply from £43,520 in 2023 to £17 in 2024, signaling potential cash flow pressures despite reported net current assets.
• Debtors have increased from zero to £45,565, indicating a buildup of receivables that may delay liquidity.
• Current liabilities remain stable around £40,000, requiring ongoing cash outflows.
• The company needs to improve debtor collection days and maintain close control over payables to avoid liquidity shortfalls.

4. Monitoring Points:

• Debtor days and aging profile: to ensure receivables are collected promptly and not becoming overdue.
• Cash balances and cash flow forecasts: to track liquidity position in real-time.
• Profitability trends once full P&L data is available: to confirm the company’s ability to generate sustainable earnings.
• Any changes in director or ownership structure that might impact governance or financial stewardship.
• Compliance with filing deadlines and any changes in accounting policies or external environment affecting social care sector.