EREYNA LABS LIMITED

Executive Summary

EREYNA LABS LIMITED is a newly incorporated micro-entity with weak financial metrics, including negative net assets and poor liquidity. The company demonstrates insufficient financial strength and cash flow to support credit facilities at this time. Without substantial improvement in capital structure and operations, credit exposure carries significant risk.

EREYNA LABS LIMITED - Analysis Report

Company Number: 14603041

Analysis Date: 2025-07-29 16:06 UTC

1. Credit Opinion: DECLINE

EREYNA LABS LIMITED shows a very weak financial position with net liabilities of £193 at the last reporting date (31-01-2025). The company’s current assets are negative £148, and current liabilities stand at £45, reflecting poor liquidity and working capital deficits. As a micro-entity incorporated in 2023, it has minimal operating history and no meaningful equity base (share capital of £1). The negative net assets and working capital deficit indicate inability to service debt or meet financial obligations reliably. Without significant capital injection or improvement in operations, the credit risk is high.

2. Financial Strength:

The balance sheet reveals net liabilities of £193, deteriorating from net assets of £1 in prior years. This signals erosion of shareholder funds and potential losses. The company’s structure as a micro entity with only 2 employees and minimal asset base leaves it financially fragile. The absence of fixed assets or retained earnings and the negative net current assets position further weaken its financial strength. Overall, the company lacks a sound equity buffer to absorb shocks.

3. Cash Flow Assessment:

Current assets are negative, which may indicate overdrafts or other short-term liabilities classified as current assets in error, or data misclassification, but in any case liquidity is critically constrained. With current liabilities of £45 against negative current assets, the company is unlikely to generate sufficient working capital to cover short-term obligations. Cash flow from operations appears negligible or negative, given the minimal turnover and lack of reported profits. This raises concerns about ongoing liquidity and operational cash sufficiency.

4. Monitoring Points:

• Quarterly review of updated cash flow forecasts and bank balances.
• Regular monitoring of any capital injections or shareholder loans to improve liquidity.
• Watch for any overdue filings or missed payments indicating financial stress.
• Review management actions to improve profitability and cash generation.
• Monitor director changes and any adverse credit events associated with key personnel.