COCO CREATIVE LTD

Executive Summary

COCO CREATIVE LTD holds a niche, flexible position within the business support services sector but is constrained by significant liquidity challenges and negative net assets, limiting its operational and growth capacity. Strategic focus on expanding service offerings, leveraging local market opportunities, and improving financial stability through capital raising or asset optimization is imperative to unlock growth potential and mitigate solvency risks. Without addressing these financial constraints, the company risks erosion of competitive advantage in a crowded market landscape.

COCO CREATIVE LTD - Analysis Report

Company Number: 13034354

Analysis Date: 2025-07-29 13:53 UTC

1. Strategic Assets: COCO CREATIVE LTD operates within the niche segment of business support services (SIC 82990), giving it flexibility to serve diverse client needs beyond traditional categories. The company benefits from a stable management team with directors having direct control and significant shareholding, ensuring aligned governance. Its investment asset valued at £105,625 provides a non-current asset base that can be leveraged or liquidated to improve financial stability. The company maintains a small, focused workforce (3 employees), allowing agile operations and low fixed overheads.

2. Growth Opportunities: Given its classification in "other business support service activities," COCO CREATIVE can expand its service offerings into adjacent consultancy, administrative, or digital support roles that are in increasing demand as businesses outsource non-core functions. Leveraging its Brighton location, it can target the growing SME and startup ecosystem in the region, tailoring bespoke support packages. The company should also explore strategic partnerships or technology integrations to enhance service scalability and improve cash flow, addressing current liquidity challenges. Additionally, increasing the share capital or seeking external investment could provide necessary funds to scale operations.

3. Strategic Risks: The company faces significant liquidity and solvency issues, with net current liabilities of £113,331 and overall negative net assets of £7,706 as of March 2024, indicating financial distress that could threaten ongoing operations without corrective actions. The current liabilities are high relative to current assets, which points to potential difficulties in meeting short-term obligations. This financial constraint limits investment capacity, undermines creditworthiness, and may erode client confidence. Furthermore, the company operates in a highly competitive service sector with low entry barriers, necessitating clear differentiation to avoid commoditization. The small employee base, while agile, may limit capacity to scale rapidly or manage larger client demands.

4. Market Position: COCO CREATIVE LTD currently occupies a modest position within the broader business support services market, functioning as a small private limited entity with limited financial resources but strategic control concentrated in experienced directors. Its market footprint is likely niche and localized, which provides an opportunity for tailored client relationships but also constrains growth without capital infusion or repositioning.