ETA MORTGAGE SOLUTIONS LIMITED

Executive Summary

ETA Mortgage Solutions Limited is a newly established mortgage finance company exhibiting early signs of liquidity strain and a notable decline in net assets in its second financial year. While compliance with filing requirements is current and the company faces no immediate solvency red flags, the erosion of working capital and concentration of control warrant further investigation to assess operational sustainability and financial health.

ETA MORTGAGE SOLUTIONS LIMITED - Analysis Report

Company Number: 14633673

Analysis Date: 2025-07-29 17:44 UTC

1. Risk Rating: MEDIUM
   The company is relatively new (incorporated in 2023) with limited operating history. The most recent financials show a decline in net current assets and net assets compared to the prior year, with current liabilities exceeding current assets, indicating potential liquidity pressure. However, the company remains active with no overdue filings or liquidation status.

2. Key Concerns:

• Liquidity deterioration: Cash and current assets decreased from £5,185 in 2024 to £2,640 in 2025, while current liabilities increased from £4,095 to £5,782, resulting in negative net working capital of £3,142.
• Reduced net assets: Net assets dropped significantly from £6,150 in 2024 to £1,409 in 2025, which could signal operational losses or asset impairment.
• Concentrated control and low staffing: The company has only one employee (the director) and three individuals with significant control holding substantial share and voting rights, which may impact governance and operational resilience.

3. Positive Indicators:

• Compliance: All statutory filings (accounts and confirmation statements) are up to date with no overdue notices or penalties.
• No external debt beyond current liabilities: The liabilities appear to be mainly corporation tax, accruals, and a small director loan, suggesting limited external borrowing risk.
• Clear accounting policies and small company reporting: The company benefits from the small companies regime, reducing administrative burden and indicating modest scale.

4. Due Diligence Notes:

• Investigate the cause of the significant reduction in cash and net assets during the latest financial year, including review of underlying profitability and cash flow statements (not provided).
• Assess the company's ongoing business model viability given only one employee and limited fixed assets, especially in the mortgage finance sector which may require robust compliance and operational infrastructure.
• Review director and PSC background more comprehensively for any potential governance or reputational risks, despite no direct evidence of disqualification or misconduct from available data.