EVB MORTGAGES LTD

Executive Summary

EVB MORTGAGES LTD shows significant financial distress with negative net assets and a lack of current assets to cover liabilities as of the latest accounts. While compliant with filing requirements and actively trading, liquidity and operational sustainability represent major concerns. Further due diligence is needed on cash flow management and business viability before considering investment.

EVB MORTGAGES LTD - Analysis Report

Company Number: 13791806

Analysis Date: 2025-07-20 17:09 UTC

1. Risk Rating: HIGH
   The company exhibits negative net assets and net current assets as of the latest accounts, indicating insolvency on a balance sheet basis. The absence of fixed assets and a declining current asset base heighten concerns about its ability to meet liabilities.

2. Key Concerns:

• Negative net assets: The company reported net assets of -£1,231 at 31 December 2023, deteriorating from -£1,131 in 2022, signaling ongoing capital erosion.
• Liquidity risk: Current assets reduced to zero in 2023 from £1,808 in 2022 while current liabilities remain at £1,231, indicating potential cash flow constraints.
• Limited operational scale: The company is a micro-entity with only one employee and minimal financial data, raising questions on business sustainability and scale.

3. Positive Indicators:

• Compliance: The company is current on both accounts and confirmation statement filings with no overdue returns or penalties.
• Sole director control: The sole director and 100% owner has consistent involvement since inception, which may support decision-making agility.
• No signs of formal insolvency: The company is active and not in liquidation, administration, or receivership, suggesting it is still operating despite financial challenges.

4. Due Diligence Notes:

• Investigate cash flow sources and timing: Clarify how the company funds operational costs given zero current assets at year-end.
• Review business model viability: Understand revenue streams, client base, and profitability prospects in the mortgage finance sector.
• Director background and plans: Assess the director’s experience, future strategy, and capacity to restore positive equity and liquidity.