ELLVID LIMITED

Executive Summary

Ellvid Limited shows a high financial risk profile with growing net liabilities and insufficient current assets to cover liabilities, raising concerns over solvency and liquidity. While the company maintains compliance with filing requirements and holds tangible assets, the operational scale appears limited. Detailed investigation into creditor terms, cash flows, and business operations is recommended to better understand the sustainability of the enterprise.

ELLVID LIMITED - Analysis Report

Company Number: 13219211

Analysis Date: 2025-07-29 12:17 UTC

1. Risk Rating: HIGH
   The company exhibits a high risk profile primarily due to significant and growing net liabilities, with shareholders’ funds deeply negative and increasing from -£73k in 2024 to -£136k in 2025, indicating deteriorating solvency. Current liabilities far exceed current assets, and long-term liabilities have increased substantially, signaling potential difficulties in meeting both short- and long-term obligations.

2. Key Concerns:

• Severe Negative Net Assets: The net liabilities have nearly doubled in one year, reflecting accumulated losses and eroded equity, raising serious concerns about the company’s financial stability and solvency.
• High Current and Long-term Liabilities: Current liabilities of £275k compared to current assets of only £18k create a liquidity mismatch, risking inability to cover short-term debts without additional financing. Long-term creditors have also increased, compounding solvency risks.
• Limited Operational Scale and Staffing: The average number of employees is reported as zero for the latest year, which combined with the nature of the business (unlicensed restaurant and café) may indicate operational challenges or a business model under stress.

3. Positive Indicators:

• Compliance with Filing Requirements: The company’s accounts and confirmation statements are filed on time with no overdue filings, demonstrating regulatory compliance and governance discipline.
• Tangible and Intangible Assets: The company holds fixed assets valued at approximately £122k, including franchise-related intangible assets, which indicates some underlying business infrastructure and potential for future earnings.
• Stable Director Presence: The current director has been in place since incorporation, providing continuity in leadership.

4. Due Diligence Notes:

• Investigate the Nature and Terms of Creditors: The significant increase in creditors, especially long-term liabilities, warrants detailed review to understand repayment terms, interest obligations, and any covenants or potential defaults.
• Review Cash Flow Statements and Funding Sources: Given the liquidity gap, examine recent cash flow trends, financing arrangements, and any capital injections planned or received to support operations.
• Assess Business Operations and Revenue Generation: Clarify operational status given the zero employees reported, including whether the business is currently trading, franchising, or in a dormant state operationally despite being active legally.
• Examine Director and Shareholder Support: Explore whether directors or shareholders have provided personal guarantees, loans, or other support mechanisms to sustain the company.