COCOGYMBO LTD

Executive Summary

COCOGYMBO LTD exhibits high financial risk characterized by ongoing negative net assets and working capital deficits, implying solvency and liquidity challenges. While regulatory compliance is maintained, the absence of employees and sustained losses raise concerns over operational sustainability. Further due diligence is required to understand the company’s business model, creditor arrangements, and cash flow outlook before considering investment.

COCOGYMBO LTD - Analysis Report

Company Number: 14126012

Analysis Date: 2025-07-20 16:09 UTC

1. Risk Rating: HIGH
   The company shows persistent negative net assets and net current liabilities over the last two reported years, indicating solvency and liquidity challenges. The negative shareholders' funds and net liabilities suggest financial distress.

2. Key Concerns:

• Solvency Risk: The company reported net liabilities of £544 at the 2024 year-end, continuing a trend from the prior year (£1,017) with shareholders' funds also negative (-£644 in 2024). This indicates the company’s liabilities exceed its assets, raising serious concerns about its ability to meet long-term obligations.
• Liquidity Concerns: The net current assets are negative (£-1,607 in 2024), with current liabilities higher than current assets, implying potential cash flow difficulties. Cash on hand is low (£2,129), and working capital remains negative.
• Operational Stability: The company has no employees reported and operates in the retail sale via mail order or internet sector. The company was incorporated recently in May 2022, and its financial performance shows continuing losses without clear indication of revenue growth or operational scale.

3. Positive Indicators:

• The company is compliant with filing requirements, with no overdue accounts or confirmation statements, suggesting adherence to regulatory deadlines.
• The business holds some tangible fixed assets (£1,063 net book value), which may support ongoing operations.
• The director has acknowledged compliance with accounting and audit exemptions appropriately, and the filings are prepared under UK GAAP (FRS 102 for small entities).

4. Due Diligence Notes:

• Investigate the company’s business model viability and revenue generation strategy given the consistent losses and negative equity.
• Clarify the nature and terms of current liabilities (£5,736), including creditor profiles and any repayment plans or covenants that could impact liquidity.
• Review cash flow projections and working capital management to assess short-term survival prospects and funding needs.
• Confirm any related party transactions or director loans potentially influencing the financial position.
• Assess the market positioning and competitive environment in the online retail sector to evaluate future growth potential.