Company Number: 13546105

Analysis Date: 2025-07-29 20:19 UTC

1. Credit Opinion: CONDITIONAL APPROVAL
   L-EVATIN LIMITED is a micro-entity operating in the advertising agency sector with a very modest asset base and limited financial activity. The company shows positive net assets and net current assets, indicating a basic ability to meet short-term obligations. However, there is a noticeable decline in net assets from £19,901 in 2021 to £7,919 in 2024, signaling erosion of capital and diminished financial strength over three years. The company has no employees and minimal fixed assets, suggesting a very lean operating model. Given these factors, credit can be extended but with conditions such as monitoring of financial performance and possibly limiting exposure due to limited capital and apparent lack of growth.

2. Financial Strength:
   The balance sheet reflects a small but positive net asset position (£7,919 at 31 Aug 2024). The decline in net assets over recent years (from £19,901 in 2021) suggests accumulated losses or withdrawals that have weakened the equity base. Fixed assets are negligible (£1,495), and the company relies mainly on current assets (£10,781) to cover current liabilities (£4,357), leaving net current assets of £6,424. The company’s financial structure is highly concentrated, with one director holding full control and no employees reported, which may limit operational scalability and resilience.

3. Cash Flow Assessment:
   The company maintains a positive working capital position, with current assets exceeding current liabilities by £6,424, indicating sufficient short-term liquidity to meet obligations as they fall due. However, the small scale of operations and declining net assets raise concerns about sustainable cash generation. Absence of detailed profit and loss data constrains full cash flow analysis, but the gradual reduction in net assets implies limited retained earnings or possible net losses, which could impact future liquidity if not addressed.

4. Monitoring Points:

• Track net asset trends and any further decline that could jeopardize solvency.
• Monitor cash flow statements and operational profitability to assess ongoing liquidity.
• Review director’s financial support or guarantees given the micro size and single-person control.
• Assess any changes in business activity, employee count, and asset base for signs of growth or distress.
• Ensure timely filing of accounts and confirmation statements to maintain transparency and compliance.