EVOLUTION WEALTH PLANNING LIMITED

Executive Summary

Evolution Wealth Planning Limited shows solid net worth supported by investments but has limited liquidity and high long-term liabilities. Improved working capital and cash balances are positive, yet the absence of operating income data and significant debt necessitate conditional credit approval pending further cash flow assurances. Close monitoring of liquidity and debt servicing metrics is recommended to mitigate risk.

EVOLUTION WEALTH PLANNING LIMITED - Analysis Report

Company Number: 13439612

Analysis Date: 2025-07-20 15:59 UTC

1. Credit Opinion: CONDITIONAL APPROVAL
   Evolution Wealth Planning Limited demonstrates a strong net asset base of £2.34 million as at May 2024 and has improved working capital from a negative £372k in 2023 to a positive £19.5k in 2024. However, the company carries significant long-term liabilities (£665k) and has minimal current assets relative to these liabilities, though cash has increased notably to £25k. The company operates in financial intermediation with no staff employed, indicating it may be a holding or investment vehicle. Given the modest liquidity and high long-term obligations, credit approval should be conditional on obtaining further cash flow forecasts and assurances on debt servicing capacity.

2. Financial Strength:
   The balance sheet is robust in terms of net assets, increasing from £1.79 million in 2023 to £2.34 million in 2024, largely driven by stable investment assets valued at £2.98 million. The company has a small called-up share capital (£101) but substantial share premium reserves (£1.46 million) and retained earnings (£879k), reflecting accumulated profits or capital contributions. The reduction in creditors due within one year from £387k to £5.9k is a positive sign, but long-term liabilities remain substantial though reduced from £818k to £666k. Overall, the company has a solid equity base but carries significant debt that requires monitoring.

3. Cash Flow Assessment:
   Cash balances have increased fivefold to £25k, improving short-term liquidity, and net current assets are positive after being negative last year. However, current assets remain small relative to overall liabilities, indicating limited liquidity cushion. No employees are reported, suggesting low operating expenses but also limited internal cash generation. The absence of detailed profit and loss data and reliance on investments and related party receivables means cash flow from operations is unclear. The ability to service debt is uncertain without further cash flow details or confirmation of income from investments.

4. Monitoring Points:

• Monitor working capital trends closely, especially current assets versus current liabilities.
• Watch long-term debt repayments and any refinancing risks given the significant non-current financial liabilities.
• Review cash flow statements and forecasts to assess ongoing liquidity and debt servicing ability.
• Track any changes in investment valuations that may impact net asset value and collateral.
• Confirm operational activity and income streams to support cash inflows, as no employees or trading activity are disclosed.
• Ensure timely filing of accounts and returns continues to maintain regulatory compliance.