C I B LOGISTIC TRANSPORT LTD

Executive Summary

C I B LOGISTIC TRANSPORT LTD is an active micro private limited company in the freight transport sector with positive but declining net assets and modest liquidity. Although it maintains compliance with filing obligations and shows operational growth via increased staffing, the sharp reduction in net assets and current assets calls for further examination of its financial health. Investors should focus on understanding the underlying causes of this decline and the company's ability to sustain operations amidst limited equity.

C I B LOGISTIC TRANSPORT LTD - Analysis Report

Company Number: 12770708

Analysis Date: 2025-07-29 18:02 UTC

1. Risk Rating: MEDIUM
   The company is a micro-entity with modest net assets and a low share capital of £1.00. While it remains solvent with positive net current assets, the significant decline in net assets from £3,480 in 2023 to £865 in 2024 indicates emerging financial pressures. The increase in employee numbers without corresponding asset growth also suggests potential strain on resources.

2. Key Concerns:

• Declining Net Assets: A substantial drop in net assets (from £3,480 to £865) within one year could indicate deteriorating profitability or increased liabilities.
• Low Share Capital: Minimal share capital (£1.00) limits the company's equity buffer against losses.
• Limited Liquidity: Current assets dropped significantly from £3,700 in 2023 to £1,122 in 2024, while current liabilities remained low but stable; this may signal tightening cash flow.

3. Positive Indicators:

• Positive Working Capital: The company maintains positive net current assets (£1,122 in 2024), indicating it can currently meet short-term obligations.
• No Filing Delinquencies: Both accounts and confirmation statements are up to date, demonstrating compliance with statutory requirements.
• Active Status & Operational Growth: The company remains active since incorporation in 2020 and has increased its average number of employees from 2 to 6, suggesting business activity expansion.

4. Due Diligence Notes:

• Investigate causes behind the sharp decline in net assets and current assets between 2023 and 2024, including potential write-downs or losses.
• Review cash flow statements and profit & loss accounts (not provided) to assess operational profitability and liquidity trends.
• Confirm the nature and terms of any creditors or liabilities not detailed here, especially the "creditors falling due after more than one year."
• Assess director's background and management capability, given single director ownership and low capital base.
• Verify whether the increase in employees aligns with revenue growth to ensure operational sustainability.