CALOCO LTD

Executive Summary

Caloco Ltd has experienced a marked decline in financial strength over the past year, with net assets nearly depleted and liquidity significantly reduced. While regulatory filings are current and the company benefits from micro-entity reporting, the sharp deterioration in financial position raises high solvency and liquidity risks. Further investigation into operational performance and director loan exposure is recommended to assess ongoing viability.

CALOCO LTD - Analysis Report

Company Number: SC736449

Analysis Date: 2025-07-29 14:14 UTC

1. Risk Rating: HIGH

   The company exhibits a significant deterioration in net assets and working capital within a single year, dropping from £3,248 in net assets (2023) to only £43 in 2024. This steep decline indicates elevated solvency risk and financial instability.

2. Key Concerns:

   • Drastic Reduction in Net Assets: Net assets fell sharply from £3,248 to £43 in one year, signaling possible operational losses or asset impairments.
   • Declining Current Assets and Net Current Assets: Current assets reduced from £4,173 to £1,238, and net current assets from £3,206 to £311, raising liquidity concerns for meeting short-term obligations.
   • Director Loan Exposure: The company has an unsecured, interest-free loan of £309 to a director repayable on demand, which may affect cash flow and governance if repayment terms are not managed prudently.

3. Positive Indicators:

   • Timely Filing Compliance: No overdue accounts or confirmation statements, indicating regulatory compliance.
   • Micro Entity Status: The company benefits from simplified reporting requirements, which may reduce administrative burdens.
   • No Employees: Operating without employees may reduce fixed overhead costs, which could be beneficial if the business activity justifies it.

4. Due Diligence Notes:

   • Investigate the cause of the substantial decrease in net assets and working capital between 2023 and 2024 to assess whether this reflects operational losses, asset write-downs, or other factors.
   • Review the nature and collectability of the director loan and its impact on liquidity.
   • Examine the company’s business model and revenue generation given the micro-entity classification and absence of employees, to evaluate operational sustainability.
   • Confirm that the company is not subject to any impending financial distress or creditor actions given the low net asset base.