EPIC ADMINISTRATION LIMITED
Company number 06232612 · Monitor this company
This analysis was written by an AI from the company's public filings. It may contain errors or omissions and is not financial or professional advice.
Risk Rating: MEDIUM
The company shows positive net assets and a strong working capital position based on the latest available accounts (2020). However, a substantial rise in long-term debt and a heavy reliance on trade debtors introduce solvency and liquidity uncertainties, particularly in the absence of more recent financial data.
Key Concerns
1. High leverage from long-term debt – Total liabilities due after one year jumped from £573k (2019) to £2.6m (2020), pushing the debt-to-equity ratio above 4:1. Without clarity on the terms or purpose of this debt, there is increased solvency risk if earnings or asset values decline.
2. Concentration of current assets in debtors – Trade debtors rose to £3.1m (2020), representing over 90% of current assets. Cash remained modest at £249k. If debtors are slow-paying or difficult to collect, the company could face cash flow pressure despite positive net current assets.
3. Limited recent financial visibility – The most detailed accounts available are for the year ended 31 March 2020. While the company remains active and filing, the lack of up‑to‑date financials restricts a full assessment of current stability.
Positive Indicators
- Consistent growth in net assets since 2012, with shareholders’ funds increasing from a deficit to £673k by 2020.
- Net current assets are strongly positive (£3.1m), indicating that short-term obligations are well covered by liquid assets.
- No filing defaults or overdue accounts noted, and the company has been operating continuously since 2007.
- Small employee base (7) suggests a lean operational structure with limited fixed overhead.
Due Diligence Notes
- Obtain the most recent filed accounts (up to 2026) and any management accounts to assess current profitability, cash flow, and debt levels.
- Investigate the nature of the £2.6m long‑term liabilities – whether they are intra‑group loans, external borrowings, or other commitments – and review repayment schedules.
- Request an aged debtors analysis to evaluate collection risk and the concentration of outstanding receivables.
- Clarify the group structure and the role of the corporate PSCs (Epic Private Equity Llp and Epic Investment Partners Llp) to understand potential financial support or dependency.
- Confirm that the company’s audit exemption and abridged filing status remain appropriate for its current size and activities.