COCOA NW1 LIMITED

Executive Summary

COCOA NW1 LIMITED is a recently incorporated micro-entity with no operational history and negative net assets. The current financial position shows insufficient liquidity and solvency concerns, leading to a credit decline recommendation. Monitoring future financial filings and trading activity is essential to reassess creditworthiness as the business develops.

COCOA NW1 LIMITED - Analysis Report

Company Number: 15209744

Analysis Date: 2025-07-20 15:56 UTC

1. Credit Opinion: DECLINE
   COCOA NW1 LIMITED is a newly incorporated micro-entity with limited financial history and an unfavorable balance sheet position. The accounts show net liabilities of £4,638 with total creditors exceeding total assets by a significant margin. The company has no employees, minimal current assets (£976), but long-term liabilities of £11,033, indicating potential cash flow and solvency concerns. The absence of trading history and negative net assets raise significant credit risk. Without evidence of operational cash flow or profitability, extending credit is not advisable at this stage.

2. Financial Strength:
   The financials reveal weak balance sheet health. Fixed assets stand at £8,412 but are outweighed by creditors due after one year of £11,033. Current liabilities appear understated at £2,993 but are inconsistent with the reported net current assets figure (-£2,017), suggesting possible data reporting issues. Net assets are negative at -£4,638, reflecting accumulated losses or initial funding shortfall. The company lacks equity cushion to absorb operational shocks.

3. Cash Flow Assessment:
   Current assets (£976) are insufficient to cover current liabilities (£2,993), resulting in negative net working capital. No employees or operational revenues are reported, indicating the company is either pre-revenue or dormant operationally. This weak liquidity position means the company may struggle to meet short-term obligations without additional capital injections or external funding.

4. Monitoring Points:

• Timely filing of next accounts and confirmation statements to track financial evolution.
• Changes in working capital, especially improvement in current assets relative to liabilities.
• Evidence of trading activity and revenue generation to support cash flow.
• Director and shareholder capital contributions or loan funding to strengthen solvency.
• Any changes in company status or director appointments that might indicate financial distress.