Company Number: 13099854

Analysis Date: 2025-07-20 13:00 UTC

1. Credit Opinion: DECLINE
   Coco Harding Limited shows a material deterioration in financial health, culminating in negative net assets and shareholders’ funds as of 31 December 2023. The company moved from a positive equity position (£11,867 in 2022) to a deficit (£-1,180 in 2023), signaling erosion of capital. Current liabilities have increased significantly (£16,507 from £4,045), while current assets have declined, resulting in a substantial working capital deficit (£-16,180). This raises concerns about the company’s ability to meet short-term obligations and service new or existing credit facilities without additional capital injection or restructuring. Given these indicators, extending credit without mitigating conditions or collateral would expose the bank to elevated risk.

2. Financial Strength:
   The balance sheet is weak. Fixed assets remain stable at £15,000 but represent a small portion of total assets. Current liabilities have quadrupled in one year, indicating increased short-term debt or payables. The decline in current assets to only £327 is insufficient to cover liabilities due within the year. Negative net current assets and negative shareholders’ funds reflect capital impairment and possible operational losses. The micro-entity size and minimal share capital (£2) limit financial flexibility. Directors confirm going concern status, but this relies on external finance availability rather than internal cash generation or equity strength.

3. Cash Flow Assessment:
   The company’s liquidity position is poor. The sharp increase in current liabilities alongside a reduction in current assets indicates cash flow strain. The working capital deficit suggests the company may struggle to fund day-to-day operations or meet creditor demands promptly. Lack of disclosed profit and loss information constrains cash flow visibility, but the balance sheet signals likely operational cash deficits or delayed receivables collection. The micro-entity structure and small staff size (2 employees) limit operational scale but do not offset liquidity risks.

4. Monitoring Points:

• Track quarterly or interim financial updates focusing on current asset and liability movements to detect further liquidity deterioration.
• Monitor any changes in directors’ funding or capital injections supporting solvency.
• Watch for overdue filings or audit exemptions that could mask financial distress.
• Review payment behavior on existing credit facilities and supplier payments to identify early warning signs.
• Evaluate the real estate portfolio performance (SIC 68209) for valuation or income changes affecting asset base.