ELLE ELLE LIMITED

Executive Summary

Elle Elle Limited, a private limited company incorporated in 2022, shows signs of financial stress as of March 2024, with a working capital deficit and net assets almost depleted. While regulatory filings are current and management asserts going concern status, the steep decline in equity and tight liquidity warrant close scrutiny. Prospective investors should conduct thorough due diligence on cash flows, asset valuations, and operational viability before proceeding.

ELLE ELLE LIMITED - Analysis Report

Company Number: 13834823

Analysis Date: 2025-07-20 14:07 UTC

1. Risk Rating: HIGH

Justification: The latest financial snapshot as of 31 March 2024 reveals negative net current assets (working capital deficit) and minimal net assets (£91), indicating potential liquidity pressure and solvency risk for this relatively new company. The company’s current liabilities slightly exceed current assets, and retained earnings have substantially diminished compared to prior periods, signaling financial distress.

2. Key Concerns:

• Liquidity Concerns: As of 31 March 2024, the company shows a working capital deficit of £369 and cash of only £28,386 against current liabilities of £28,755, suggesting tight liquidity with little margin for operational disruptions.
• Erosion of Net Assets: Net assets dropped dramatically from £13,431 in January 2024 to just £91 in March 2024, indicating significant losses or asset write-downs within a short period.
• Limited Operating History and Scale: Incorporated in January 2022 with one employee and minimal tangible fixed assets, the company’s small size and short trading history increase uncertainty about operational sustainability.

3. Positive Indicators:

• Compliance with Filing Requirements: The company is up to date with accounts and confirmation statement filings, indicating regulatory compliance and good governance practices.
• Majority Ownership and Control: Single director and 75-100% shareholder Mrs Lisa Lieu-Mcewen provides clear control and decision-making authority, which can aid swift strategic responses.
• Going Concern Assertion: Management confirms the company is a going concern, suggesting access to resources or support to continue trading despite current financial challenges.

4. Due Diligence Notes:

• Investigate the cause of the sharp decline in net assets between January and March 2024, including any extraordinary expenses, impairments, or changes in accounting policies.
• Review cash flow statements and forecasts to assess the company’s ability to cover short-term liabilities and sustain operations.
• Evaluate the business model and revenue generation capacity given the industry classification (business support services) and minimal staff headcount.
• Confirm related party transactions or director loans that may impact liquidity.
• Assess any contingent liabilities or off-balance sheet risks not reflected in the current accounts.
• Verify the accuracy and completeness of debtor balances and creditor aging to understand working capital management.