CC TWO LIMITED

Executive Summary

CC TWO LIMITED is a newly established micro-entity currently exhibiting negative net assets and working capital, indicating financial distress and limited ability to meet debt obligations. The lack of trading history and available profit data prevents confidence in creditworthiness, leading to a recommendation to decline credit facilities at this stage. Close monitoring of future financial performance and liquidity is essential before reconsideration.

CC TWO LIMITED - Analysis Report

Company Number: 15042485

Analysis Date: 2025-07-29 15:41 UTC

1. Credit Opinion: DECLINE
   CC TWO LIMITED shows significant financial weakness with net liabilities of £29,039 and negative net current assets of £27,539 as at 31 August 2024. The company is newly incorporated (August 2023) and in its first financial period, operating as a micro-entity with only one employee (the director). The negative net assets indicate that the company is currently insolvent on a balance sheet basis, which raises material concerns about its ability to service any debt or credit facilities. There is no audit or profit and loss information available to assess profitability or cash generation. Given these factors and the lack of trading history, the company is not currently a suitable candidate for credit extension.

2. Financial Strength:
   The balance sheet is weak: current liabilities exceed current assets by £27,539, and overall the company has net liabilities of £29,039. The absence of fixed assets and the negative working capital position signals poor financial health. Shareholders' funds are negative, reflecting cumulative losses or initial deficits. The company is reliant on the director for capital and control, with no external equity buffer. As a micro-entity, it benefits from simplified reporting but the financial position suggests limited financial resilience.

3. Cash Flow Assessment:
   Negative current assets indicate the company may be experiencing cash flow difficulties. Without positive working capital or cash reserves disclosed, liquidity is insufficient to meet short-term obligations. No cash flow statements are available, but the negative net current assets imply reliance on director funding or external financing to meet payables. This liquidity risk undermines confidence in its ability to meet ongoing operating expenses or credit commitments.

4. Monitoring Points:

• Track future filings for improvement in net assets and working capital position.
• Monitor profit and loss accounts when available for evidence of sustainable profitability.
• Review director funding or external financing arrangements supporting liquidity.
• Watch for timely filing of accounts and confirmation statements to flag any compliance issues.
• Assess market conditions and sector outlook for IT consultancy to gauge business viability.