Credit Analysis: Expert Analysis Group Limited

1. Credit Opinion: DECLINE

Reasoning: This company presents unacceptable credit risk based on severe and sustained deterioration in balance sheet strength. Total assets have declined by approximately 91% from their 2017 peak (£125,650) to just £11,841 at March 2026. Shareholders' funds have eroded correspondingly from £113,836 to £11,051. The company lacks the asset base, liquidity, and financial trajectory to support additional debt obligations. The pace of decline has accelerated in the most recent period, with assets falling by over 53% between March 2025 and March 2026 alone.

2. Financial Strength

Balance sheet is critically weakened and deteriorating:

• Fixed assets negligible: £153 in 2026 — the company is essentially an operating shell with no meaningful asset backing
• Liabilities minimal at £5: While low leverage appears positive, it actually signals the company has no access to or appetite for credit facilities
• Share capital remains at £2,300: No fresh equity has been injected to offset the erosion in retained funds
• Accruals and deferred income increased from £1,575 to £2,095, suggesting possible income recognition timing issues or growing obligations

The sustained contraction across every major balance sheet metric over a 9-year period indicates structural business decline rather than cyclical fluctuation.

3. Cash Flow Assessment

Liquidity position is extremely thin and worsening:

• Current assets fell from £25,038 (2025) to £11,688 (2026) — a 53% decline in a single year
• Cash position: Last reported at £66,547 (2022); no cash figure disclosed for 2025-2026, which for a micro-entity typically indicates immaterial balances
• Working capital (£12,993) provides minimal buffer for operational requirements, let alone debt service
• No revenue or profit data available due to micro-entity filing exemptions, making it impossible to assess operational cash generation

Key concern: As a financial intermediation firm (SIC 64999) providing regulatory umbrella services, this company's business model depends on regulatory credibility and financial substance. The near-hollow balance sheet undermines both.

4. Monitoring Points

Should any existing exposure exist, the following require close surveillance:

1. Continuing asset erosion — if total assets fall below £5,000, the entity may be approaching de facto dormancy
2. Filing compliance — accounts are currently up to date, but any future overdue filings would signal further deterioration
3. Director activity — monitor for disqualification orders or resignations, particularly given Dr Wilson's >75% control
4. Regulatory status — verify FCA authorisation remains active given the regulatory umbrella business model
5. Related party transactions — the significant decline may reflect transfers or distributions to shareholders; micro-entity accounts provide no visibility on this
6. Confirmation statement — next due May 2027; ensure timely filing continues