Company Number: 13476766

Analysis Date: 2025-07-29 15:06 UTC

1. Credit Opinion: CONDITIONAL APPROVAL
   Evileye Security Ltd demonstrates modest but improving financial strength typical of a micro-entity in early years of operation. The company maintains positive net assets and working capital, indicating the ability to meet short-term liabilities. However, cash conversion appears limited given the decline in current assets from £43k to £24k, which warrants monitoring. Given the start-up nature and low employee count, credit should be extended with conditions such as periodic financial updates and limits on exposure.

2. Financial Strength:
   As of 29 June 2024, the company holds net assets of £17,179, up from £15,979 the previous year, evidencing incremental growth in equity. Fixed assets increased significantly to £8,062 from £1,325, suggesting investment in long-term resources. Current assets decreased to £24,874 from £43,376, while current liabilities also declined to £15,757 from £28,722, improving net current assets to £9,117 from £14,654 the prior year. Overall, the balance sheet is positive but reflects a small scale operation with limited capital buffer.

3. Cash Flow Assessment:
   Current assets predominantly consist of cash or equivalents and receivables, though the sizeable drop year-on-year may signal tighter liquidity or slower turnover of receivables. Current liabilities have decreased, easing pressure on working capital needs. The net current assets position remains positive, indicating working capital adequacy in the short term. However, absence of profit and loss data limits a full assessment of cash flow generation. The company’s ability to service debt or new credit facilities depends on maintaining or improving cash inflows.

4. Monitoring Points:

• Track cash and receivables levels relative to payables to ensure ongoing liquidity.
• Monitor fixed asset additions and their impact on cash reserves.
• Require submission of profit and loss accounts or management accounts to assess operational profitability and cash flow trends.
• Watch for any changes in directors or significant control that could affect governance or risk profile.
• Review overdue filings or any signs of delayed payments to suppliers or creditors.