CINCHNETTE LTD

Executive Summary

CINCHNETTE LTD appears financially solvent with positive net assets and good liquidity, supported by compliance with filing obligations. However, the company’s micro-entity status, limited operational scale, and provisions for liabilities require further scrutiny to fully assess operational stability and risk exposure. Overall, the current data indicate low immediate risk but warrant additional due diligence on provisions and cash flow sustainability.

CINCHNETTE LTD - Analysis Report

Company Number: 13822867

Analysis Date: 2025-07-20 15:27 UTC

1. Risk Rating: LOW
   The company demonstrates a positive net asset position and net current assets, with no overdue filings or signs of financial distress. Being a micro-entity with a single director/shareholder and minimal liabilities reduces complexity and risk exposure.

2. Key Concerns:

• Provisions for liabilities totaling £3,800 warrant review to understand underlying risks or contingent obligations.
• Small scale of operations with only one employee may limit operational resilience and growth prospects.
• The company's short trading history (incorporated late 2021) restricts trend analysis and financial performance visibility.

3. Positive Indicators:

• Strong liquidity indicated by net current assets of £6,380 exceeding current liabilities of £5,600.
• Positive net assets of £8,981 reflecting equity backing and solvency.
• Timely filing of accounts and confirmation statements with no overdue reports, suggesting good regulatory compliance.
• Active website presence aligned with business activities in IT consultancy and specialised design, supporting operational legitimacy.

4. Due Diligence Notes:

• Investigate the nature and likelihood of the £3,800 provisions for liabilities, including any potential impact on cash flows or solvency.
• Review cash flow statements and turnover figures (not provided) to assess operational sustainability beyond balance sheet snapshots.
• Clarify revenue streams and client concentration given the mixed SIC codes (design, IT consultancy, wholesale clothing/footwear).
• Confirm director’s background and involvement given sole directorship and ownership, ensuring governance robustness.
• Consider the business model scalability given the micro-entity status and limited employee base.