COCO RIDGE LIMITED

Executive Summary

COCO RIDGE LIMITED exhibits a very strong financial position with excellent liquidity, minimal liabilities, and solid equity for its first year of operation. The company appears well-capitalised but is in an early phase with limited operational activity. To sustain this healthy financial state, management should focus on deploying assets effectively and planning operational growth while maintaining prudent risk and governance controls.

COCO RIDGE LIMITED - Analysis Report

Company Number: 15254564

Analysis Date: 2025-07-29 20:21 UTC

Financial Health Assessment for COCO RIDGE LIMITED

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1. Financial Health Score: A

Explanation:
COCO RIDGE LIMITED demonstrates a highly robust financial position for a newly incorporated company. The company holds substantial liquid assets relative to its current liabilities, indicating excellent short-term financial health. The balance sheet shows strong equity backing with negligible liabilities, akin to a patient with a strong heartbeat and no immediate symptoms of distress.

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2. Key Vital Signs

Metric	Value (£)	Interpretation
Cash at Bank	3,141,768	Exceptionally healthy cash flow; strong liquidity buffer
Fixed Assets (Investments)	800	Minimal long-term assets; typical for a start-up or holding entity
Current Liabilities	29,009	Very low short-term debts; manageable and well covered
Net Current Assets	3,112,759	Strong working capital; indicates no liquidity issues
Shareholders' Funds	3,113,559	Solid equity base; company is well-capitalised
Employees	0	No payroll burden; low operating overheads
Company Age	~1 year	Very new company; early stage of operations

Interpretation:
The company is akin to a patient showing no signs of illness—ample cash reserves, negligible debt, and healthy net assets. This financial state suggests strong ability to meet obligations and fund operational needs without stress.

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3. Diagnosis

• Liquidity & Solvency: The company enjoys a "healthy cash flow" with over £3.1 million in cash against only £29k in current liabilities, indicating excellent liquidity. This means it can easily cover short-term debts and operational expenses.
• Leverage: There is virtually no debt burden, reflecting a conservative financial structure and minimal financial risk.
• Capital Structure: Shareholders’ funds are strong, supporting stable ownership and resilience to shocks. The company’s equity is essentially the net asset value, indicating no hidden liabilities or off-balance-sheet risks.
• Operations: No employees are recorded, which may indicate the company is in an investment or holding phase, or outsourcing operations, thus limiting overheads.
• Industry Context: Operating in real estate letting/management (SIC 68209), the company likely holds or manages property assets, though fixed assets reported are minimal (£800), suggesting ownership of real estate may be through other means or the company is newly acquiring assets.
• Age & Growth Potential: Being less than a year old, the company is in its infancy. While the financials show strength, the future operational performance will depend on how these assets are deployed.

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4. Recommendations

To maintain and improve the financial wellness of COCO RIDGE LIMITED, consider the following actions:

• Asset Deployment Strategy: Develop a clear plan to utilize the strong cash reserves effectively, such as acquiring income-generating property assets or investing in complementary real estate opportunities to generate sustainable revenue streams.
• Operational Planning: If the company intends to grow beyond a holding entity, plan for hiring or outsourcing operational roles to manage properties efficiently, balancing costs with revenue potential.
• Risk Management: Monitor current liabilities closely to avoid sudden increases; maintain a healthy cash buffer to safeguard against market fluctuations in real estate.
• Financial Reporting: As the company grows, consider moving beyond exemption from detailed financial audits to enhance transparency and stakeholder confidence.
• Tax Planning: With significant cash holdings, engage in proactive tax planning to optimize liabilities and ensure compliance, especially as operational activities increase.
• Governance: Given the close family control (Mrs. Candice Cohen and Mr. Ian Joel Cohen each holding 25-50% shares and voting rights), implement strong governance practices to mitigate risks associated with concentrated ownership.

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