ECA TOTAL SERVICES U.K LTD

1. Risk Rating: MEDIUM

The company is solvent, up to date with its statutory filings, and holds positive shareholders’ funds. However, liquidity is constrained, current liabilities are concentrated in a director’s loan account, net assets have declined materially over the last two years, and the absence of a filed profit and loss account limits the ability to verify profitability or the causes of the balance sheet contraction.

2. Key Concerns

• Weak liquidity position: Cash at bank and in hand was £1,027 at 30 September 2025, against current liabilities of £24,172. Current assets are dominated by trade debtors of £27,519, meaning the company’s ability to meet near-term obligations depends heavily on customer collections rather than cash reserves.
• Creditor concentration: A director’s loan account of £21,940 represents approximately 91% of total creditors falling due within one year. Repayment demands from the controlling director/PSC could create immediate cash pressure given the low bank balance.
• Declining balance sheet and limited transparency: Total assets fell from £67,590 (2024) to £28,546 (2025), and net assets fell from £37,227 to £24,374 over the same period. The accounts are filleted, so the profit and loss account is not publicly available; the reasons for the asset and equity decline cannot be assessed from the filed data alone.

3. Positive Indicators

• Regulatory compliance: Annual accounts and confirmation statement are recorded as not overdue.
• Positive equity: Shareholders’ funds remain positive at £24,374, indicating the company is not balance-sheet insolvent.
• Stable workforce: The average number of employees was unchanged at 14 in both 2024 and 2025.
• Established entity: Incorporated in 2015, with approximately ten years of registration history.

4. Due Diligence Notes

• Obtain the full profit and loss account, which has not been delivered to the Registrar, to assess turnover, margins, and operating results.
• Review the aging and collectability of trade debtors (£27,519) and identify any major customer concentrations.
• Obtain the terms of the director’s loan account (£21,940), including repayment schedule, interest, and whether repayment is at the company’s discretion or subject to demand.
• Investigate the reduction in total assets from £67,590 to £28,546 between 2024 and 2025, including the lack of depreciation on tangible fixed assets held at £20,000.
• Clarify the operational status of both SIC classifications (non-hazardous waste collection and IT consultancy) and their respective contributions to revenue.
• Confirm the source of funds used to reduce the director’s loan from £50,000 (2024) to £21,940 (2025).