E-SELECT LIMITED

Executive Summary

E-SELECT LIMITED is an early-stage micro-entity with very limited financial activity and significant operational uncertainty due to unresolved franchise discussions. The company’s balance sheet is fragile, with minimal current assets and net assets, and reliance on director loans. Given the lack of trading revenue and weak liquidity, the company is not currently creditworthy for external lending or credit facilities.

E-SELECT LIMITED - Analysis Report

Company Number: SC724621

Analysis Date: 2025-07-29 20:06 UTC

1. Credit Opinion: DECLINE
   E-SELECT LIMITED presents significant credit risk. The company is very early stage (incorporated 2022) and classified as micro-entity with minimal financial activity and scale. The accounts reveal a franchise fee asset financed entirely by a director loan of £13,000. Current assets and net assets are negligible (£202 and £2 respectively), with no trading income evident. The business is in pending discussions with the franchise owner, indicating operational uncertainties. Lack of revenue, minimal working capital, and reliance on director funding compromise its ability to service external debt or credit facilities.

2. Financial Strength:
   Balance sheet health is weak. Total net assets stand at £2, with fixed assets of £13,000 representing prepaid franchise fees. The corresponding director loan of £13,000 is a long-term creditor, indicating no external financing. Current assets are £202, barely covering current liabilities of £200, leaving net current assets of only £2. There is no retained earnings or reserves, reflecting lack of profitability or operational cash generation. The company's financial foundation is fragile and lacks buffer against adverse events.

3. Cash Flow Assessment:
   Liquidity is very limited. Current assets (cash or equivalents) are minimal at £202 with current liabilities at £200, suggesting negligible working capital. The absence of trading activity means no operating cash inflows, and the business depends on director funding for capital expenditure. There is no evidence of positive cash flow generation to support debt repayment or creditor obligations. The company’s ability to meet short-term obligations from operations is highly questionable.

4. Monitoring Points:

• Progress and outcome of discussions with the franchise owner to clarify operational viability.
• Evidence of trading activity and revenue generation in subsequent periods.
• Cash flow statements or bank balances to monitor liquidity trends.
• Any changes in director funding or introduction of external finance.
• Timely filing of accounts and confirmation statements to ensure compliance.