Company Number: SC676902

Analysis Date: 2025-07-20 13:30 UTC

1. Risk Rating: HIGH
   CAYR LIMITED exhibits significant solvency and liquidity risks, as evidenced by consistently negative net current assets and shareholders’ funds. The company’s liabilities substantially exceed its current assets, indicating potential difficulties in meeting short-term obligations.

2. Key Concerns:

• Negative Net Current Assets: For the financial year ending May 2024, net current liabilities stand at £110,174, worsening from £80,453 the previous year, highlighting a deteriorating liquidity position.
• Persistent Shareholders’ Deficit: Shareholders’ funds are deeply negative (£94,831 in 2024), reflecting accumulated losses and eroding equity base, which undermines financial stability.
• High Creditors Relative to Assets: Current liabilities (£154,059) significantly outweigh current assets (£43,885), driven by trade creditors and other creditors, raising concerns about potential cash flow constraints and supplier confidence.

3. Positive Indicators:

• Increasing Cash Balance: Cash at bank improved from £497 in 2023 to £19,926 in 2024, suggesting some improvement in cash management or recent inflows.
• Revenue Recognition Policy: The company has clear accounting policies for revenue, intangible assets, and impairment, indicating adherence to accounting standards and transparency.
• No Overdue Filings: Both accounts and confirmation statements are up to date with no overdue filings, reflecting regulatory compliance in reporting.

4. Due Diligence Notes:

• Examine Cash Flow Statements: Review detailed cash flow data to understand sources of cash and timing of creditor payments given the negative working capital.
• Assess Creditor Terms and Payment Practices: Investigate the nature and terms of the substantial trade and other creditors to evaluate risk of supplier disputes or forced payment demands.
• Review Business Model and Profitability: Understand the underlying business operations, revenue streams, and path to profitability given the ongoing losses reflected in reserves.
• Validate Intangible Asset Valuation: Confirm the recoverability of the franchise agreement intangible asset (£15,345) given impairment policies and company outlook.
• Director’s Plans for Financial Recovery: Obtain management commentary or forecasts addressing the negative equity and liquidity issues.

Operational Stability and Regulatory Compliance:
The company is active, privately held, and has no indication of insolvency proceedings. Filings are current, and there is a single director with no disqualification records noted. The increase in employee numbers (from 7 to 11) could imply operational scaling, but given financial stress, sustainability is uncertain without further information on profitability or funding.