ELYXA LIMITED

Executive Summary

Elyxa Limited is a recently formed start-up with significant net liabilities funded by director loans and no track record of profitability. Despite adequate short-term liquidity, the company’s negative equity and dependence on director support present a high credit risk. Credit facilities are not recommended until the company demonstrates improved financial strength and sustainable cash flows.

ELYXA LIMITED - Analysis Report

Company Number: 14633836

Analysis Date: 2025-07-29 17:40 UTC

1. Credit Opinion: DECLINE
   Elyxa Limited is a newly incorporated private limited company with only its first year of trading history. The financials reveal significant net liabilities (£18,454) and negative shareholders' funds, primarily due to director loans (£20,582) classified as long-term liabilities. The company has minimal current assets (£4,167) and current liabilities (£2,039), leading to positive net current assets but insufficient overall capitalisation. Although the director has provided financial support and a going concern statement, the company currently lacks independent cash flow generation and equity. Without demonstrated profitability or external funding sources, the risk of non-repayment is high. Thus, credit facilities should be declined until the company establishes a positive equity base and consistent cash flow.

2. Financial Strength:
   The balance sheet shows the company is undercapitalized with net liabilities driven by director loans. Fixed assets are not reported, indicating no material long-term investments. Current assets comprise mainly cash (£3,761) and small debtors (£406), sufficient to cover short-term creditors (£2,039) with a working capital surplus of £2,128. However, the long-term liability (£20,582) reflects director funding rather than external debt, which, although supportive, does not represent sustainable capital. Negative retained earnings suggest accumulated losses, consistent with a start-up phase.

3. Cash Flow Assessment:
   Cash at bank is low but exceeds current liabilities, providing short-term liquidity. Debtors and prepayments are minimal. The company has no bank borrowings disclosed, relying solely on director loans. The absence of operating profit or cash flow data limits assessment, but the negative equity and reliance on director funding imply cash flow generation is not yet established. The business is vulnerable if director support ceases, posing a liquidity risk.

4. Monitoring Points:

• Profitability and cash flow development in the next 1-2 years to assess self-sufficiency.
• Changes in net asset position, especially reduction of net liabilities and increase in equity.
• Director funding levels and any conversion of loans to equity.
• Debtor and creditor turnover and working capital management.
• Timely filing of accounts and confirmation statements to ensure compliance and transparency.