Company Number: 14355908

Analysis Date: 2025-07-20 15:17 UTC

1. Credit Opinion: DECLINE
   Eutrix Property Limited shows significant weaknesses in its financial position. The company has persistently negative net current assets (circa -£310k) and a small negative net asset position (-£8.7k), indicating a weak balance sheet and potential solvency issues. Current liabilities far exceed current assets, which raises serious concerns about liquidity and the ability to meet short-term obligations. The absence of profitability figures and minimal cash reserves (£806 in 2024) further undermine confidence in debt servicing capacity. Given these factors, the company poses a high credit risk and is not recommended for credit approval at this time.

2. Financial Strength:
   The company holds tangible fixed assets valued at £301,190, which consist of freehold land and buildings. However, this is offset by large current liabilities (£312,209) and minimal current assets (£2,293). The shareholders’ deficit and retained losses indicate accumulated losses with no equity buffer. The balance sheet’s negative net current assets position suggests ongoing liquidity pressure. The company’s financial trajectory appears stagnant, with negligible improvement in net assets or working capital since incorporation in 2022.

3. Cash Flow Assessment:
   Cash balances are low and have decreased from £1,736 in 2023 to £806 in 2024. Trade debtors are minimal (£1,487) and unlikely to provide timely liquidity. The company’s high short-term creditor obligations (£312k) vastly exceed liquid assets, indicating poor liquidity and working capital management. Without additional capital injection or asset realization, the firm may struggle to meet immediate financial commitments.

4. Monitoring Points:

• Liquidity trends: Monitor cash balances and current asset turnover closely.
• Creditors ageing: Track the ageing profile of current liabilities and ability to refinance or extend terms.
• Profitability and cash generation: Request future P&L data to assess if the company can generate operating cash flow.
• Asset valuations: Confirm market values of fixed assets and potential encumbrances.
• Directors’ plans: Engage with management on turnaround or restructuring strategies.