EUREKA LETTING AND PROPERTY MANAGEMENT LTD

Executive Summary

EUREKA LETTING AND PROPERTY MANAGEMENT LTD currently exhibits weak financial health with negative net assets and poor liquidity, indicating significant credit risk. As a micro-entity with minimal assets and only one employee, the company lacks financial resilience and operational scale. Credit facilities should be declined unless substantial improvements are demonstrated in future financial periods.

EUREKA LETTING AND PROPERTY MANAGEMENT LTD - Analysis Report

Company Number: 14554830

Analysis Date: 2025-07-20 11:26 UTC

1. Credit Opinion: DECLINE
   EUREKA LETTING AND PROPERTY MANAGEMENT LTD shows a weak financial position as of its latest accounts dated 31 December 2023. The company reports net liabilities of £1,275 with minimal current assets (£5) and current liabilities significantly higher (£1,280). The negative net asset base signals poor capital adequacy and an inability to cover short-term obligations. Given the company is newly incorporated (December 2022) and operates with only one employee, it lacks financial depth and operational scale to reliably service debt or withstand economic stresses. Without significant improvement in asset base or cash flows, the risk of default is elevated.

2. Financial Strength:
   The balance sheet reveals a fragile capital structure. Total assets are negligible and current liabilities exceed current assets, resulting in negative working capital. Shareholders’ funds are in deficit (£-1,275), indicating accumulated losses or initial funding shortfalls. The micro-entity status limits available financial disclosures but the data suggests the company is undercapitalized. No fixed assets or long-term investments are reported, meaning no tangible collateral is available against credit facilities.

3. Cash Flow Assessment:
   The company’s liquidity position is poor, with only £5 in current assets against £1,280 in current liabilities. This suggests an inability to meet short-term liabilities as they fall due. Operating cash flow appears minimal or negative, and the business likely depends on external funding or director loans to maintain operations. Working capital management will be a key concern, as the company cannot self-finance its ongoing obligations from internal resources.

4. Monitoring Points:

• Track subsequent filings for improvements in net assets and liquidity.
• Monitor cash flow statements (when available) for positive operating cash inflows.
• Observe changes in creditor balances to assess whether liabilities are being managed or accumulating.
• Review director loans or external funding arrangements for sustainability.
• Assess any changes in business scale or diversification that may impact financial stability.