EMULSIONAL SUPPORT LTD

Executive Summary

Emulsional Support Ltd is a micro private limited company with improving working capital and no overdue statutory filings, indicating moderate operational and regulatory stability. However, its minimal equity base, historical liquidity challenges, and relatively small asset base present medium solvency and liquidity risks. Further due diligence on cash flows and accruals is recommended to fully assess financial health and sustainability.

EMULSIONAL SUPPORT LTD - Analysis Report

Company Number: 13263321

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

1. Risk Rating: MEDIUM
   The company shows a modest improvement in net current assets and net assets in the latest financial year but remains a micro-entity with limited capital and minimal share capital. The positive trend in working capital is encouraging, yet the overall financial scale and historical negative working capital present moderate solvency and liquidity risks.

2. Key Concerns:

• Historical Negative Working Capital: For multiple years prior to 2024, the company reported negative net current assets, indicating past liquidity challenges that could have constrained operational flexibility.
• Minimal Share Capital and Net Assets: With only £2 share capital and net assets just above £1,200, the company has a very limited equity buffer to absorb financial shocks or losses.
• Accruals and Deferred Income: The presence of £950 in accruals and deferred income could indicate unearned revenue or pending obligations that warrant further clarity to assess short-term cash flow impact.

3. Positive Indicators:

• Recent Improvement in Working Capital: The net current assets improved to £672 as of 31 March 2024, reversing previous years of negative working capital, which suggests better short-term financial management or operational performance.
• No Overdue Filings: Both accounts and confirmation statements are up to date with no overdue filings, indicating satisfactory regulatory compliance and governance.
• Stable Directorship: The same two directors have maintained appointments since incorporation without any recorded disqualifications or compliance issues.

4. Due Diligence Notes:

• Investigate the nature and timing of the accruals and deferred income to understand any contingent liabilities or revenue recognition issues.
• Review cash flow statements (if available) to confirm liquidity trends and ability to meet short-term obligations.
• Explore the business model and revenue streams under SIC codes 96090 and 43341 to assess operational sustainability and growth prospects.
• Verify any related party transactions given the small size and familial directorship, to ensure arm's length dealings.
• Confirm if the company has any external financing or contingent liabilities not reflected in the filed accounts.