CNC DATA LTD
Company number 07613539 · Monitor this company
This analysis was written by an AI from the company's public filings. It may contain errors or omissions and is not financial or professional advice.
Credit Analysis Report: CNC DATA LTD (07613539)
1. Credit Opinion: DECLINE
This application must be declined. The company is currently subject to a Proposal to Strike Off at Companies House, meaning it is in the formal process of being dissolved. Extending credit to an entity undergoing dissolution carries near-certain loss risk, as the company will cease to exist upon completion of the strike-off process. Additionally, the company has been technically insolvent for four consecutive years and has overdue statutory filings. No credit facility should be considered until the strike-off action is resolved and financial health substantially improves.
2. Financial Strength: Critically Weak
The balance sheet reveals a deeply distressed entity:
| Metric | 2024 | 2023 | 2022 | 2021 | 2020 | 2018 (Peak) |
|---|---|---|---|---|---|---|
| Net Assets | (£23,891) | (£34,322) | (£7,579) | (£20,024) | £2,192 | £59,894 |
| Total Assets | £37,802 | £11,358 | £28,873 | £8,354 | £3,095 | £81,050 |
| Total Liabilities | £68,271 | £52,258 | £40,266 | £33,090 | £903 | £21,156 |
| Net Current Assets | (£30,469) | (£40,900) | N/A | N/A | N/A | N/A |
Key concerns: - Technical insolvency: Net assets have been negative since FY2021, meaning liabilities exceed assets by nearly £24k - Working capital deficit: Net current assets are (£30,469) — current liabilities exceed current assets by over 200% - No tangible recovery trajectory: While net assets improved slightly from (£34,322) to (£23,891), this remains deeply negative and the company has been insolvent for four consecutive years - Share capital of £1M is entirely eroded: Shareholders' funds stand at (£23,891), representing a complete destruction of invested capital - Zero employees: Both 2023 and 2024 report 0 employees, suggesting the business is either dormant or operated solely by the director with no operational infrastructure
The slight improvement in net assets from 2023 to 2024 (from -£34,322 to -£23,891) appears driven by an increase in current assets (from £11,358 to £37,802) rather than liability reduction, which warrants scrutiny regarding asset quality.
3. Cash Flow Assessment: Severely Constrained
Liquidity Position: Critical - Current assets of £37,802 against current liabilities of £68,271 yields a current ratio of approximately 0.55:1 — significantly below the 1.0:1 threshold for healthy liquidity - Fixed assets of only £6,578 (unchanged from prior year, suggesting no new investment) provide negligible asset backing - No long-term creditors reported, meaning the entire £68,271 liability burden is due within one year
Cash Flow Concerns: - With zero employees and minimal assets, there is limited evidence of trading activity generating cash inflows - The company's micro-entity filing provides no profit & loss detail, obscuring revenue and trading performance - The absence of any disclosure about director loans or related-party balances in the filed accounts is notable given the insolvency - No cash position is disclosed for 2024, though 2015 showed cash of £14,286
Working Capital Assessment: The company cannot meet its short-term obligations from current assets. It is entirely dependent on creditor forbearance, director support, or asset realisations to continue as a going concern.
4. Monitoring Points
If circumstances change and the strike-off is resolved, the following would require ongoing surveillance:
| Metric | Current Position | Threshold for Concern |
|---|---|---|
| Net Assets | (£23,891) | Must return to positive |
| Current Ratio | 0.55:1 | Below 1.0:1 is critical |
| Filing Compliance | Both accounts & confirmation statement overdue | Any overdue filing |
| Company Status | Proposal to Strike Off | Must be "Active" only |
| Employee Count | 0 | Sustained zero raises going concern doubts |
| Creditor Balances | £68,271 all due within 1 year | Increasing creditor days or balances |
Additional Red Flags Identified: - Overdue statutory filings: Both annual accounts and confirmation statement are overdue, indicating regulatory non-compliance and potential administrative abandonment - Late accounts filing: 2024 accounts were approved 05 February 2026 for a 31 March 2024 year-end — approximately 22 months after the period end - Director concentration: Sole director Max Baines holds both director and secretary positions with no board oversight - PSC structure: Two individuals each hold 25-50% ownership, creating potential for governance disputes - Historical volatility: Net assets swung from £59,894 (2018) to (£34,322) (2023), demonstrating extreme financial instability
Supplementary Risk Factors
Strike-Off Implications: - Creditors can object to the strike-off, which may pause the dissolution process - If struck off, company assets vest in the Crown (bona vacantia) - Any credit extended pre-dissolution becomes effectively uncollectible without court application to restore the company
Management Quality Assessment: - Filing compliance is poor — overdue on both accounts and confirmation statement - Accounts approved nearly two years after period end suggests limited engagement with statutory duties - No strategic report, no director's commentary on going concern status despite clear insolvency - Micro-entity accounts provide minimal transparency, limiting creditor assessment