Company Number: 14705165

Analysis Date: 2025-07-20 18:54 UTC

1. Credit Opinion: DECLINE
   CAFEINN LTD shows clear signs of financial distress and operational cessation. The company ceased trading on 5 December 2024, and the most recent accounts show negative shareholders funds of £14,308 with current liabilities (£15,102) significantly exceeding current assets (£794). The worsening net current asset position and persistent negative equity suggest insufficient capacity to meet debt obligations. Furthermore, the short operating history (incorporated in March 2023) and recent director turnover increase uncertainty. Given these factors, extending credit would pose a high risk of default.

2. Financial Strength:
   The company is micro-sized with minimal fixed assets reported, relying on current assets which have sharply decreased from £10,020 (March 2024) to £794 (December 2024). Current liabilities remain high and only marginally reduced from £18,627 to £15,102 during the same period. The resulting negative net current assets highlight liquidity strain. Negative shareholders funds indicate accumulated losses eroding equity, raising concerns about solvency without external capital injection or operational turnaround.

3. Cash Flow Assessment:
   The sharp decline in current assets, coupled with high current liabilities, points to a liquidity crunch. The company’s cessation of trading further implies no ongoing cash inflows, severely impairing working capital management. Without trading revenue or asset liquidation plans disclosed, the ability to service short-term obligations is highly questionable.

4. Monitoring Points:

• Watch for any formal insolvency filings or liquidation announcements.
• Monitor changes in director appointments and any capital injections.
• Review future filings for signs of restructuring or recovery plans.
• Assess any creditor arrangements or debt rescheduling efforts.