CAIO MASTELLA ENKE LTD

Executive Summary

CAIO MASTELLA ENKE LTD shows signs of liquidity stress and capital erosion, with current liabilities exceeding current assets and a sharp decline in net equity. While compliance and operational status are positive, limited financial transparency warrants further investigation into profitability and cash flows to fully assess the company’s financial stability and operational sustainability.

CAIO MASTELLA ENKE LTD - Analysis Report

Company Number: 13727581

Analysis Date: 2025-07-29 18:59 UTC

1. Risk Rating: MEDIUM
   The company shows a material deterioration in net current assets from a positive £7,141 in 2022 to a negative £5,495 in 2024, indicating potential liquidity pressure. The very low shareholders' funds of £107 also highlight limited equity buffer. However, the company is currently active and compliant with filing obligations, which mitigates some governance risks.

2. Key Concerns:

• Liquidity strain: Current liabilities (£27,667) exceed current assets (£22,172) as of March 2024, suggesting short-term cash flow challenges.
• Erosion of net assets: Significant drop in net assets from £7,141 to £107 over approximately 18 months may imply operational losses or capital depletion.
• Limited financial disclosures: Micro-entity reporting and absence of profit and loss account reduce transparency on profitability and cash generation, complicating risk assessment.

3. Positive Indicators:

• No overdue filings: Accounts and confirmation statements are up to date, indicating sound compliance and governance practices.
• Active operation: The company is active, with at least one employee reported, suggesting ongoing business activity.
• Stable ownership and management: The director and significant controllers appear consistent, with no red flags such as disqualifications or multiple directorships noted.

4. Due Diligence Notes:

• Obtain detailed profit and loss information to understand the cause of net asset erosion and assess profitability trends.
• Review cash flow statements to evaluate short-term liquidity management and ability to meet current liabilities.
• Investigate the nature of current liabilities to determine if they are trade creditors, tax liabilities, or other obligations with imminent payment requirements.
• Confirm the business model’s sustainability given the financial position, especially considering the principal activity as a dental practice.
• Assess any off-balance sheet liabilities or contingent risks not visible in micro-entity accounts.