Company Number: 13027560

Analysis Date: 2025-07-29 12:17 UTC

1. Risk Rating: HIGH
   Justification: Cadenzia Ltd exhibits persistent net current liabilities and negative net assets over multiple years, indicating ongoing solvency challenges. Cash balances are minimal relative to current liabilities, raising liquidity concerns. The company is small and unaudited, limiting transparency.

2. Key Concerns:

• Negative net assets and shareholders’ funds of £5,581 as of 31 Oct 2024, worsening from prior years, suggest capital erosion and potential insolvency risk.
• Net current liabilities of £7,144, with cash on hand only £1,972, highlight tight liquidity and potential difficulties in meeting short-term obligations.
• Lack of audit and limited financial disclosures restrict insight into profitability, cash flows, and going concern assumptions, increasing uncertainty.

3. Positive Indicators:

• The company remains active with timely filings for both accounts and confirmation statements, indicating regulatory compliance.
• Tangible fixed assets of £2,084 suggest some tangible resource base, albeit modest.
• Stable directorship with two directors appointed at incorporation, showing continuity in management.

4. Due Diligence Notes:

• Investigate the business model viability and revenue trends, as turnover and profit/loss figures are not available in the filings.
• Review detailed cash flow statements and creditor aging to assess liquidity management and payment track record.
• Clarify the nature and terms of the significant current liabilities (£80k+), including any related party transactions or contingent liabilities.
• Assess directors' plans to restore solvency or restructure the balance sheet given persistent losses and negative net assets.
• Verify absence of any director disqualifications or regulatory issues not apparent from public records.