ENVIRONMENTAL RESOURCE GROUP LIMITED
Company number 05103488 · Monitor this company
This analysis was written by an AI from the company's public filings. It may contain errors or omissions and is not financial or professional advice.
Credit Analysis: Environmental Resource Group Limited
1. Credit Opinion: DECLINE
This entity is a dormant shell company within the Oliver Grace Ltd group structure, with no trading activity, no revenue, and negative net assets of £655,714. The company is technically insolvent and entirely dependent on continued parent company support for its going concern status. Standalone credit facilities should not be extended to this entity. Any lending consideration must be directed to the parent company (Oliver Grace Ltd) or operating subsidiaries with actual cash flows, and would require robust group guarantees.
2. Financial Strength
Balance sheet is critically impaired:
| Metric | 2021 | 2020 | 2019 |
|---|---|---|---|
| Total Assets | £138,325 | £138,325 | £138,325 |
| Total Liabilities | £797,239 | £797,239 | £797,239 |
| Net Assets | (£655,714) | (£655,714) | (£658,914) |
| Shareholders' Funds | (£657,253) | (£657,253) | (£657,253) |
- Deep insolvency: Net liabilities have persisted at approximately £655k-£659k for three consecutive years with no improvement trajectory
- No meaningful assets: The only assets are £3,200 in fixed asset investments (shares in group undertakings) and £138,325 in inter-company debtors
- All liabilities are inter-company: The £797,239 owed is entirely to group undertakings, suggesting this is a financing vehicle rather than a trading entity
- Accumulated losses: P&L reserves show £657,253 in accumulated losses with no evidence of trading to reverse this position
- Minimal share capital: Only £1,539 in called-up share capital provides negligible equity cushion
3. Cash Flow Assessment
No independent cash-generating capability:
- Zero revenue: The company has not traded during the year or preceding financial period, received no income, and incurred no expenditure
- Zero employees: No payroll costs or operational activity
- Negligible cash position: £4,970 reported in 2019; no cash disclosure in 2021 suggests even this minimal balance may have been utilised
- Complete group dependency: Going concern basis explicitly states reliance on "continued group financial support for the foreseeable future"
- No working capital: Net current liabilities of £658,914 provide no liquidity buffer whatsoever
The company is effectively a balance sheet vehicle for group financing arrangements, with no standalone capacity to service any debt obligations.
4. Monitoring Points
If any group-related facility is considered, the following require ongoing monitoring:
- Parent company financial health: Oliver Grace Ltd's consolidated accounts must demonstrate sufficient group resources to support this subsidiary's obligations
- Group guarantee enforceability: Any facility must be supported by a parent company guarantee with appropriate legal opinions
- Inter-company position changes: Monitor whether the £797,239 inter-company creditor position changes, which could indicate restructuring of group obligations
- Dormancy status: Verify the company remains dormant and does not commence trading without appropriate facility amendments
- Filing compliance: Currently compliant (accounts to September 2027, confirmation statement to February 2027) - monitor for any overdue filings which could signal group distress
- Related entity performance: The website references "RED Industries" as the trading brand - any credit assessment should focus on the actual operating entities within the group rather than this dormant holding vehicle