EOS ELECTRICAL AND RENEWABLES LTD

Executive Summary

EOS Electrical and Renewables Ltd is an early-stage company with a weak balance sheet characterized by negative net assets and working capital deficits. The company currently lacks sufficient liquidity and profitability to support new credit facilities without additional capital support. Close monitoring of financial improvements and operational cash flows is recommended before approving credit.

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Company Analysis

This analysis is opinion only and should not be interpreted as financial advice.

EOS ELECTRICAL AND RENEWABLES LTD - Analysis Report

Company Number: 14501748

Analysis Date: 2025-07-29 12:34 UTC

  1. Credit Opinion: DECLINE
    EOS Electrical and Renewables Ltd is a newly incorporated private limited company operating in electrical installation, with limited trading history (just over one year). Its latest financials show net current liabilities of £1,015 and negative shareholder funds of £1,016, indicating a weak balance sheet and no equity buffer. The company has no employees and minimal debtor balances (£2,010), while current liabilities slightly exceed this amount (£3,025), including director loans and accruals. The absence of tangible fixed assets (disposal of motor vehicle) and negative net assets indicate limited financial strength. Given the lack of profitability data and weak liquidity, the company currently lacks sufficient financial capacity to support new or increased credit facilities.

  2. Financial Strength:
    The balance sheet reveals net liabilities and negative equity, primarily due to accumulated losses and no retained profits reported. The company has no fixed assets at period end and operates with minimal debtor balances, offset by short-term liabilities including director loans. This fragile financial position reflects the early stage of trading and limited capitalization. Without tangible net assets or positive working capital, the company is financially vulnerable and dependent on director support or further capital injection for stability.

  3. Cash Flow Assessment:
    Working capital is negative, with current liabilities exceeding current assets by £1,015. Debtors are minimal (£2,010), and the company holds no cash disclosed in accounts, suggesting limited liquidity. The reliance on director loans (£2,425) indicates external funding from related parties rather than operational cash generation. No employee costs are recorded, reducing overhead but also indicating limited operational scale. The company’s ability to meet short-term obligations without additional capital is questionable.

  4. Monitoring Points:

  • Improvement in working capital and turning net current liabilities into positive net current assets.
  • Generation of positive retained earnings and shareholders funds over time.
  • Regular and timely filing of accounts and confirmation statements to maintain compliance.
  • Evidence of increasing debtor balances from trading and reduction of reliance on director loans.
  • Any change in management or ownership structure that may affect governance or credit risk.

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