EMMARAPHMIC LIMITED

Executive Summary

Emmaraphmic Limited is a very small, micro-entity company with limited financial resources and no employees, indicating minimal business activity. Its modest net assets and working capital provide only a narrow margin for meeting short-term obligations, raising concerns about its capacity to service credit. Without evidence of operational cash flow or growth, extending significant credit is not advisable at this stage.

EMMARAPHMIC LIMITED - Analysis Report

Company Number: 12950647

Analysis Date: 2025-07-20 14:09 UTC

1. Credit Opinion: DECLINE. The company is a micro-entity with minimal assets (£246 net assets) and no employees, indicating very limited business activity. The net current assets are positive but nominal (£246), and there is no evidence of operating income or cash flow generation. The business appears to be in an early stage without demonstrated capacity to service any credit facilities beyond minimal levels. The director’s occupation in unrelated sectors (food services and clothing) suggests limited specialized management focus on the current business activity (other food services). Given these factors, the credit risk is high for lending or extending significant credit without further financial support or guarantees.

2. Financial Strength: The balance sheet shows very limited financial strength. Net assets increased from £100 in 2022 to £246 in 2023, reflecting a small accumulation of current assets over current liabilities. The company holds minimal cash or equivalent assets, and no fixed assets are reported. Share capital is nominal (£100). The absence of employees and minimal asset base indicate a very small scale operation with limited financial buffer. The company meets the micro-entity threshold and has complied with filing deadlines, but the small scale limits its ability to absorb financial shocks.

3. Cash Flow Assessment: Cash and current assets remain very low (£630 in 2023), with current liabilities at £384, leaving a modest positive working capital of £246. This limited liquidity suggests the company can meet short-term obligations only if its cash inflows are sustained or improved. No detailed profit and loss information is provided, but the minimal net assets and absence of employees imply constrained cash generation capacity. The working capital position is barely positive, and the company’s ability to handle unexpected expenses or debt service is questionable.

4. Monitoring Points:

• Track any changes in net current assets and cash balances to assess liquidity trends.
• Monitor turnover and profitability once financial accounts with P&L data become available.
• Watch for any increases in liabilities or delayed payments indicating cash flow stress.
• Assess director activity and any expansion of business scale or employee headcount as signs of growth.
• Review subsequent filings for any changes in company status or control that may affect credit risk.