COCOON HEALTH AND WELLBEING LIMITED

Executive Summary

Cocoon Health and Wellbeing Limited is a micro-entity with minimal financial activity, showing very low turnover and negligible profitability. The absence of assets and cash reserves results in zero net assets and no working capital, indicating weak financial strength and limited ability to service credit. Given these factors, the company is not suitable for credit facilities at this time and requires close monitoring for any improvement in financial position or operational scale.

COCOON HEALTH AND WELLBEING LIMITED - Analysis Report

Company Number: 12816842

Analysis Date: 2025-07-20 17:28 UTC

1. Credit Opinion: DECLINE
   Cocoon Health and Wellbeing Limited operates in the fitness facilities sector but remains a micro-entity with minimal financial activity. The company shows very low turnover (£16,489 in the last year) and minimal profitability (£476 profit for the year), with no recorded assets or liabilities. Absence of current assets and liabilities indicates a very limited operational scale and no liquidity buffers. This financial profile suggests insufficient cash generation capacity to service debt or meet ongoing commercial credit obligations. The lack of working capital and negligible net assets are significant credit risks. Given these factors, the company is not currently creditworthy for lending or extended payment terms without substantial collateral or guarantees.

2. Financial Strength:
   The balance sheet reflects zero fixed assets, zero current assets, and zero liabilities, resulting in net assets of zero. Share capital is minimal (£2), and shareholder funds stand at zero. This indicates no tangible net worth or financial reserves. The company appears to be run on a very small scale with limited investment in operating resources. The absence of any accrued income or prepayments further underscores the weak financial position. There is no evidence of capital strength or retained earnings to absorb potential losses or fund growth.

3. Cash Flow Assessment:
   There is no evidence of current assets such as cash or receivables, implying a lack of liquidity. Current liabilities are also zero, so working capital is neutral; however, the absence of cash or equivalents raises concerns about the company’s ability to meet short-term obligations or invest in growth. Staff costs and materials costs consume almost all the turnover, leaving only a nominal profit, which limits internal cash generation. Overall, cash flow appears very constrained, with no buffer to manage operational or financial shocks.

4. Monitoring Points:

• Track turnover growth and profit margins to assess operational viability improvements.
• Monitor any changes in current assets or introduction of liabilities that could affect liquidity.
• Review directors’ credit and trading conduct to ensure sound management.
• Watch for timely filing of future accounts and confirmation statements to confirm compliance and transparency.
• Assess any changes in ownership or capital injection that might strengthen financial capacity.