CNC DATA LTD

Risk Rating: HIGH The rating reflects the company's technical insolvency, severe liquidity deficit, and imminent risk of dissolution. The company's liabilities significantly exceed its assets, and the "Proposal to Strike off" status indicates that the entity's continued legal existence is in jeopardy, which fundamentally undermines any investment case.

Key Concerns: 1. Technical Insolvency and Liquidity Crisis: As of March 31, 2024, the company reported net current liabilities of £30,469 and total net liabilities of £23,891. Current liabilities (£68,271) vastly exceed current assets (£37,802), indicating a severe lack of working capital and an inability to cover short-term obligations from current resources. 2. Imminent Dissolution (Strike-Off Status): The company status is "Active - Proposal to Strike off." This indicates an active process to remove the company from the Companies House register. Whether initiated voluntarily by the directors or compulsorily due to non-compliance, this status suggests the business is either ceasing operations or is severely delinquent in its administrative duties. 3. Regulatory and Filing Non-Compliance: Both the annual accounts and the confirmation statement are listed as overdue. Failure to maintain basic statutory filing requirements suggests a breakdown in governance and administrative processes, which often precedes compulsory strike-off by the Registrar.

Positive Indicators: 1. Recent Improvement in Net Assets: While still negative, the net asset position improved year-over-year from £(34,322) in 2023 to £(23,891) in 2024, suggesting a reduction in overall liabilities or a capital injection. 2. Increase in Current Assets: Current assets grew significantly from £11,358 in 2023 to £37,802 in 2024. Although still insufficient to cover current liabilities, this represents a tripling of short-term assets which could indicate the collection of debts, a shift to cash, or a recent injection of funds. 3. Historical Viability: The company has been incorporated since 2011 and maintained a healthy positive net asset position as recently as 2018 (£59,894), demonstrating that the underlying business model has been viable in the past.

Due Diligence Notes: 1. Nature of the Strike-Off: It is critical to determine whether the strike-off proposal was filed voluntarily by the directors (Form DS01) or if it is a compulsory strike-off initiated by Companies House due to non-compliance. If voluntary, the directors may intend to dissolve the insolvent entity; if compulsory, the company's operational control is at risk. 2. Creditor Composition: The accounts are filed under the micro-entity regime, which limits visibility. An investigator should request full (unabridged) accounts to ascertain how much of the £68,271 in current liabilities is owed to related parties (e.g., the directors) versus third-party creditors. If liabilities are primarily director loans, the immediate insolvency risk is mitigated as directors are unlikely to force their own company into insolvency. 3. Board Approval Date Anomaly: The latest filed accounts text notes approval by the board on "05 February 2026." This is a clear anomaly given the reporting period ended March 31, 2024. This should be clarified with the company to ensure the filed documents are valid and legally binding. 4. Operational Status: The accounts confirm zero employees for both 2023 and 2024, despite the website indicating active trading in the IIoT & Industry 4.0 space. Due diligence should establish whether the company is actively generating revenue or functioning as a dormant shell accruing liabilities.