EP&G LTD

Executive Summary

EP&G LTD is a very new business operating in the take-away food industry with negative equity and net current liabilities, indicating financial weakness and limited ability to service credit. The company’s small asset base and negative working capital suggest liquidity risks. Credit approval is not recommended at this stage without further evidence of positive cash flow and profitability.

EP&G LTD - Analysis Report

Company Number: 14778361

Analysis Date: 2025-07-20 17:08 UTC

1. Credit Opinion: DECLINE. EP&G LTD is a newly incorporated entity with less than one full year of trading history. The company reports negative net assets (£-8,837) and net current liabilities of £16,000, indicating an over-reliance on short-term creditor funding. Given the negative equity position and absence of positive working capital, the company currently lacks the financial robustness to service additional credit facilities reliably. Without evidence of profitability or cash flow generation, extending credit poses a high risk.

2. Financial Strength: The balance sheet shows tangible fixed assets of £7,163, funded largely by short-term creditors (£16,000). Shareholders’ funds are negative, reflecting accumulated losses in the startup phase. The company employs 2 people, typical for a micro or small entity in the take-away food sector (SIC 56103). The limited asset base and negative equity highlight weak capitalization and financial fragility.

3. Cash Flow Assessment: Net current assets are negative at £-16,000, indicating the company has more immediate liabilities than liquid assets. This suggests potential liquidity strain and limited buffer to absorb operational shocks or fund growth from internal resources. The absence of reported cash or debtor balances further raises concerns about day-to-day liquidity management.

4. Monitoring Points:

• Turnover and profitability trends in subsequent accounting periods to assess business viability.
• Changes in net current assets and liquidity ratios to monitor short-term financial health.
• Any director or shareholder cash injections or external funding to improve capital structure.
• Timely filing of accounts and confirmation statements as a proxy for management diligence.