CESC LIMITED

Executive Summary

CESC Limited is a newly incorporated micro-entity currently showing negative net assets and working capital, indicating high solvency risk. While the company maintains good compliance and has a focused operational scope, the financial position and single-person control highlight significant risk factors for investors. Further due diligence is recommended to clarify cash flow dynamics and the business’s viability.

CESC LIMITED - Analysis Report

Company Number: 14402888

Analysis Date: 2025-07-20 14:00 UTC

1. Risk Rating: HIGH
   The company exhibits significant solvency concerns with net liabilities of £9,403 and negative net current assets of £20,651, indicating inability to cover short-term debts. The small scale and early stage of operations combined with negative equity elevate risk.

2. Key Concerns:

• Negative Net Assets and Working Capital: The company’s liabilities exceed assets, suggesting financial distress and potential difficulties in meeting obligations.
• Very Limited Operational Scale: With only one employee and micro-entity status, operational sustainability and growth prospects are uncertain.
• Concentration of Control: Single director and 75-100% ownership by one individual may raise governance and succession risk.

3. Positive Indicators:

• Compliance Up to Date: No overdue filings or accounts, indicating regulatory compliance and good administrative oversight.
• Clear Industry Focus: Diversified SIC codes (retail via mail/internet, electrical installation, repair of electrical equipment) potentially offering multiple revenue streams.
• New Company with Recent Incorporation: Incorporated in October 2022, so losses and negative net assets may reflect startup phase rather than long-term distress.

4. Due Diligence Notes:

• Verify the nature and timing of current liabilities to assess immediate cash flow needs and creditor pressure.
• Assess the business model, revenue generation, and pipeline to understand path to profitability and sustainability.
• Investigate the director’s background and financial support capability given the concentrated ownership and control.
• Review any off-balance sheet liabilities or contingent risks not disclosed in the micro-entity accounts.