ETS999 LTD

Executive Summary

ETS999 Ltd exhibits improving financial stability with a strengthening net asset position and positive working capital in the latest year. However, past liquidity challenges and reliance on director financing warrant cautious monitoring. The company maintains good compliance with filing obligations, supporting operational transparency.

ETS999 LTD - Analysis Report

Company Number: 13144781

Analysis Date: 2025-07-29 21:06 UTC

1. Risk Rating: MEDIUM
   ETS999 Ltd presents a moderate risk profile. The company shows improving liquidity and net asset position as of the latest financial year, but historical negative working capital and reliance on director's loan account introduce some concerns about short-term financial stability.

2. Key Concerns:

• Volatile Working Capital: The company experienced negative net current assets for multiple years (e.g., -£31k in 2022 and -£23k in 2024), indicating past liquidity stress, although improved to positive £8.9k in 2025.
• Director’s Loan Account Reliance: A significant portion of current liabilities relates to a director’s loan account (£24k in 2025, down from £58k in 2024), suggesting dependency on director financing which could risk liquidity if withdrawn.
• Asset Disposal and Depreciation: The company’s fixed assets declined from £94k in 2024 to £65k in 2025 primarily due to disposals, raising questions about operational asset base and future capacity to generate revenue.

3. Positive Indicators:

• Improved Liquidity Position: The latest year shows a turnaround to positive net current assets and reduction in current liabilities, implying better short-term financial health.
• Consistent Net Asset Growth: Net assets rose from £39.6k in 2021 to £74.2k in 2025, indicating retained earnings growth and strengthening equity base.
• Timely Compliance: There are no overdue filings or accounts, which suggests good regulatory compliance and governance practices.

4. Due Diligence Notes:

• Investigate the nature and terms of the director’s loan account to assess repayment risk and dependency level.
• Review the circumstances around the disposal of fixed assets to understand its impact on operational capacity and future earnings.
• Examine cash flow statements if available to confirm if working capital improvements are sustainable and not due to one-off factors.
• Confirm customer concentration given sizeable debtor balances and evaluate credit risk and collection history.