EWAY POLYMERS LIMITED

Executive Summary

Eway Polymers Limited is a recently established private company showing early signs of positive net asset growth but remains dependent on related party balances, which presents potential liquidity and solvency risks. The company maintains compliance with filing obligations and transparent ownership, though its limited operating history warrants close monitoring of cash flows and related party exposures.

EWAY POLYMERS LIMITED - Analysis Report

Company Number: 14934496

Analysis Date: 2025-07-29 15:51 UTC

1. Risk Rating: MEDIUM
   The company is newly incorporated (2023) with limited operating history but shows a positive net asset position at the 2024 year-end. However, the relatively high level of amounts owed to associates and the small equity base raise caution regarding financial independence and potential liquidity constraints.

2. Key Concerns:

• Related Party Balances: The company has significant amounts owed to and from related parties (amounts owed to associates of £404,088 and debtors from related party of same amount), indicating reliance on intercompany financing which could pose risks if those parties face difficulties.
• Limited Operating History: Incorporated in mid-2023, the company has only one full financial year completed, limiting the ability to assess operational stability and financial trends.
• Modest Net Current Assets: While net current assets are positive (£17,032), this is marginal given the scale of creditors and debtors; any delay in collecting receivables or increase in liabilities could strain liquidity.

3. Positive Indicators:

• Positive Net Assets: The company moved from a net liability position at incorporation (-£3,221) to positive net assets (£17,032) within its first full year, suggesting initial growth or capital injection.
• No Filing or Compliance Issues: Accounts and confirmation statements are filed on time; no overdue filings or regulatory concerns reported.
• Clear Ownership and Control: The sole director and 75-100% shareholder is identified, providing transparency on governance and decision-making.

4. Due Diligence Notes:

• Investigate the nature and terms of related party transactions, including any guarantees or funding arrangements, to assess risk exposure.
• Review cash flow forecasts and receivables aging to evaluate liquidity risk and timing of cash inflows from debtors.
• Confirm the sustainability of business activities and client base given the wholesale chemical products sector and limited employee headcount.
• Monitor future filings for evidence of operational progress and profitability trends.