CF TELECOM SOLUTIONS LTD

Executive Summary

CF Telecom Solutions Ltd’s latest financials reveal a significant liquidity strain with current liabilities exceeding current assets, and a halving of net assets over one year. While the company remains compliant with filing requirements and shows some asset base, its small scale and working capital deficit pose substantial solvency and operational risks. Further due diligence on cash flows and liabilities is recommended before considering investment.

CF TELECOM SOLUTIONS LTD - Analysis Report

Company Number: 13121507

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

1. Risk Rating: HIGH

Justification: CF Telecom Solutions Ltd shows a marked deterioration in liquidity with net current liabilities of £13,139 as of 31 January 2024, compared to net current assets in prior years. This negative working capital position raises concerns about the company’s ability to meet short-term obligations. The small scale of operations (one employee, micro-entity status) and limited equity base (£5,361 net assets) further increase solvency risk.

2. Key Concerns:

• Liquidity shortfall evidenced by current liabilities exceeding current assets by over £13k in the latest accounts.
• Declining net assets, halving from £10,556 in 2023 to £5,361 in 2024, indicating erosion of equity.
• Very limited operational scale with only one director/employee and minimal share capital (£1), which may constrain business resilience and capacity to generate cash flow.

3. Positive Indicators:

• The company is active and current with all filing obligations, including accounts and confirmation statements, demonstrating regulatory compliance.
• No indication of insolvency proceedings or director disqualifications.
• Fixed assets presence (£18,500) in 2024 suggests some investment in tangible or intangible resources.

4. Due Diligence Notes:

• Investigate the nature and timing of current liabilities to assess whether these are trade payables, accrued expenses, or short-term debt, and the risk of default.
• Review cash flow statements or bank statements to verify actual liquidity position and operational cash generation.
• Assess reasons behind the significant increase in current liabilities from 2023 to 2024 and whether this is a one-off or ongoing trend.
• Understand the business model and revenue streams given the micro-scale operation and sector (wireless telecommunications).
• Confirm the director’s plans or strategies to address the declining net assets and working capital deficit.