2 BY 2 WEBSITES LTD

Executive Summary

2 BY 2 WEBSITES LTD exhibits minimal and declining trading activity with sustained losses and shrinking net assets, reflecting poor financial health and limited cash flow. The company’s inability to generate meaningful revenue or profit, combined with sole director control, results in a high credit risk profile unsuitable for new lending. Continued monitoring of financial performance and liquidity is essential, but current conditions do not support credit approval.

2 BY 2 WEBSITES LTD - Analysis Report

Company Number: 13466304

Analysis Date: 2025-07-29 12:10 UTC

1. Credit Opinion: DECLINE

2 BY 2 WEBSITES LTD shows a very limited and declining trading performance with turnover collapsing from £10,050 in 2021 to only £134 in 2024. The company posted consecutive losses, including a significant £2,525 loss in the latest year, eroding profitability and cash generation. Despite having no current liabilities, the business is effectively dormant in terms of trading activity, indicating poor ability to generate operational cash flow or service debt. The single director and 100% owner provides limited diversification in management oversight, and there is no evidence of financial recovery or growth prospects. These factors suggest high credit risk and inability to meet new or existing credit obligations.

2. Financial Strength:

The balance sheet is small but shows positive net assets of £5,057 as of June 2024, down from £8,045 in 2021. Fixed assets remain constant at £2,755, reflecting likely minimal investment or impairment. Current assets decreased sharply to £2,302 from £5,290 three years prior, consistent with the decline in trading activity. No current liabilities are reported, so net current assets stand at £2,302, indicating some short-term liquidity cushion. However, the declining net assets trend and absence of profits weaken the overall financial strength.

3. Cash Flow Assessment:

Cash flow appears to be very weak or negative given the steep drop in turnover and ongoing losses. The company’s working capital remains positive due to no current liabilities but is shrinking. The absence of creditors suggests minimal trade payables or external financing, which could limit operational flexibility. There is no indication of external cash injections or financing support. Liquidity is constrained by poor revenue generation and negative profitability, raising concerns about the ability to fund ongoing operations or debt service.

4. Monitoring Points:

• Turnover and profitability trends in upcoming accounts filings to detect any recovery or further decline.
• Changes in current and fixed asset levels as a proxy for investment or asset disposals.
• Cash flow statements (if available) or director commentary on liquidity and funding plans.
• Any new director appointments or changes in ownership that might indicate restructuring.
• Confirmation of no overdue filings or emerging creditor pressure.