Company Number: 13225336

Analysis Date: 2025-07-29 12:43 UTC

1. Risk Rating: MEDIUM
   While EMTAD Limited maintains positive net assets and has shown growth in shareholder funds from £85,475 (2023) to £115,556 (2024), the company exhibits some liquidity concerns due to its relatively high long-term liabilities compared to current assets and tight working capital. The micro-entity scale and absence of detailed profitability data limit a full assessment of operational sustainability.

2. Key Concerns:

• High Long-Term Creditors: The company carries significant non-current liabilities (£219,952 in 2024) relative to its current assets (£11,320), which could pressure cash flows needed to meet these obligations over time.
• Fluctuating Working Capital: Although net current assets improved to £6,108 in 2024 from a negative £17,408 previously, the low level indicates limited liquidity buffer for short-term commitments.
• Limited Financial Disclosure and No Audit: Being a micro-entity, EMTAD Limited’s accounts are unaudited and provide minimal detail, restricting insight into profitability, cash flows, or contingent liabilities. This opacity increases uncertainty about operational stability.

3. Positive Indicators:

• Increasing Net Assets: The company has increased net assets by approximately 35% over the year, suggesting retained earnings or asset revaluation that strengthens equity.
• On-Time Filings and Compliance: Both annual accounts and confirmation statements are filed on time, indicating disciplined governance and regulatory compliance.
• Stable Management Team: The same two directors have maintained control since incorporation, providing continuity in leadership. The presence of a person with significant control holding 25-50% shares suggests clear ownership structure.

4. Due Diligence Notes:

• Investigate the composition and terms of the long-term creditors to assess repayment schedules and refinancing risk.
• Obtain more detailed financial performance metrics, including revenue, profit/loss, and cash flow statements, to evaluate operational viability.
• Confirm the nature of fixed assets (£329,400) to understand asset liquidity and impairment risks.
• Review any off-balance-sheet liabilities or contingent exposures not disclosed in micro-entity filings.
• Assess the business model and client contracts underlying the SIC code (management of real estate on a fee or contract basis) to gauge sustainability and market risks.