Company Number: 14836496

Analysis Date: 2025-07-29 15:23 UTC

1. Risk Rating: LOW
   Justification: EVCO Services Limited is a recently incorporated (2023) private limited company with a positive net asset position (£39,279) and net current assets (£38,401). The company is active, fully compliant with filing deadlines (accounts and confirmation statement not overdue), and shows no signs of insolvency or financial distress in its first reporting period. Cash balances are strong relative to current liabilities, indicating good short-term liquidity.

2. Key Concerns:

• Limited operating history: The company has been trading for only 17 months, restricting the ability to assess long-term operational stability and financial performance trends.
• Concentrated ownership and control: Two individuals hold 75-100% of shares and voting rights, possibly increasing governance risk if not balanced by other controls.
• Tax and social security creditor balance: The notable amount of £27,047 under taxation and social security creditors warrants review to ensure these obligations are being managed prudently and will not impact cash flow.

3. Positive Indicators:

• Strong liquidity: Cash of £77,703 covers current liabilities of £40,476 by almost 2:1, indicating the company can meet its short-term obligations comfortably.
• Healthy working capital: Net current assets of £38,401 suggest the business has sufficient operational resources.
• Compliance: No overdue filings, and the director affirms going concern basis and proper accounting policies, supporting regulatory adherence and governance.
• Small company exemption utilized appropriately, reducing administrative burden while maintaining transparency.

4. Due Diligence Notes:

• Review the nature and timing of tax and social security creditor balances, including any potential deferred payments or disputes with HMRC.
• Confirm the sustainability of cash inflows and profitability, as the profit and loss account is not included and the company is in an early stage.
• Assess the governance framework given concentrated control by two related persons (likely family members), ensuring adequate checks and balances.
• Verify any related party transactions, given the shareholding and director overlap, to evaluate potential conflicts of interest.
• Understand the business model under SIC 46510 (wholesale of computers and related equipment) and market positioning to assess operational risks.