EVERTAUT HOLDINGS LIMITED

Executive Summary

Evertaut Holdings Limited exhibits a leveraged balance sheet with strong fixed asset investments but constrained liquidity due to significant current liabilities exceeding current assets. While equity has increased, the company's negative working capital and minimal cash reserves present short-term repayment risks. Conditional credit approval is recommended, contingent on the company demonstrating adequate cash flow or financial support to manage immediate obligations.

EVERTAUT HOLDINGS LIMITED - Analysis Report

Company Number: 13835076

Analysis Date: 2025-07-29 15:39 UTC

1. Credit Opinion: CONDITIONAL APPROVAL
   Evertaut Holdings Limited shows a significant imbalance between current assets and current liabilities, with net current liabilities of approximately £85,000 as of the latest accounts. The company holds substantial fixed asset investments (£811,789) but limited liquid assets (cash of £2), and large secured debts (£622k), which points to reliance on long-term financing rather than short-term liquidity. The increase in shareholders’ funds (£108k to £197k) suggests some equity growth, but the persistent negative working capital and relatively high secured debt raise concerns over short-term repayment capacity. Approval could be considered if the company can provide evidence of stable cash flow generation or external support to cover short-term liabilities.

2. Financial Strength:
   The balance sheet shows a sizeable fixed asset investment base, indicating some underlying asset strength. However, current liabilities are far exceeding current assets, with minimal cash reserves, indicating tight liquidity. Long-term liabilities are significant but have reduced slightly from the prior year, suggesting some debt repayment progress. Shareholders’ funds have nearly doubled to £197k, reflecting retained earnings or capital injection, which strengthens equity but does not alleviate immediate liquidity issues. The company’s financial structure is leveraged, and the negative net working capital indicates vulnerability to short-term financial pressure.

3. Cash Flow Assessment:
   The company’s liquidity position is weak, with cash on hand effectively negligible and debtors representing the bulk of current assets. The large current liabilities relative to current assets imply potential difficulty in meeting short-term obligations without converting debtors to cash promptly. The absence of an income statement limits direct assessment of operational cash flows, but the negative working capital and high secured borrowings suggest cash flow constraints. Monitoring debtor collection efficiency and timely repayment of loans will be critical to avoid liquidity crises.

4. Monitoring Points:

• Current ratio and net working capital trends to track short-term liquidity improvements or deterioration.
• Debt repayment schedules and refinancing risks on secured bank loans.
• Debtor aging and cash conversion cycle to ensure timely cash inflows.
• Equity injections or retained earnings growth to bolster financial resilience.
• Any changes in director or PSC details and their financial support capacity.