EW3N LTD

Executive Summary

EW3N Ltd is a newly incorporated private limited company with a negative net asset position and a significant working capital deficit, indicating high solvency and liquidity risks. While compliance with filings and committed ownership are positives, the company’s limited operating history and current financial position suggest material risk to operational sustainability without further capital or improved cash flows.

EW3N LTD - Analysis Report

Company Number: 14616456

Analysis Date: 2025-07-29 20:09 UTC

1. Risk Rating: HIGH
   The company exhibits significant solvency and liquidity concerns, evidenced by net liabilities of approximately £84,581 and current liabilities exceeding current assets by £84,614. Given its recent incorporation and limited operating history, the financial position indicates a high risk of failure to meet short-term obligations without additional capital or operational improvement.

2. Key Concerns:

• Negative Net Assets and Working Capital Deficit: The company’s balance sheet shows net liabilities and a substantial working capital shortfall, suggesting insolvency risks.
• High Current Liabilities Relative to Current Assets: Current liabilities (£106,429) far exceed current assets (£21,815), indicating potential liquidity strain and cash flow challenges.
• Short Operating History: Incorporated in January 2023 with accounts for the first year, the company lacks a track record to demonstrate operational stability or profitability.

3. Positive Indicators:

• No Overdue Filings: Accounts and confirmation statements are up to date, reflecting compliance with statutory filing requirements.
• Shareholder Support: The three directors each hold between 25-50% of shares and voting rights, potentially indicating committed ownership aligned with management.
• Minimal Fixed Assets: Low investment in fixed assets (£33) reduces risk of asset impairment and may reflect a service-oriented business model with lower capital expenditure.

4. Due Diligence Notes:

• Verify the nature and terms of loans and overdrafts (£95,480 total) to assess repayment obligations and related party exposures (noting amounts owed to participating interests).
• Investigate the company’s business model, revenue generation, and contract pipeline to evaluate prospects for improving liquidity and profitability.
• Review cash flow statements and management forecasts, if available, to understand short-term liquidity management strategies.
• Confirm the relationship and financial interdependencies with participating interests and whether these might impose additional risk.
• Assess the directors’ plans for capital injection or restructuring to address the working capital deficit.