Company Number: 15120528

Analysis Date: 2025-07-29 16:26 UTC

1. Credit Opinion: APPROVE with caution. CODE CONNECT LTD is a newly incorporated micro-entity with a short trading history of just over one year. The company currently demonstrates positive net current assets (£1,805) and net assets (£1,985), indicating a modest but sound financial position for its size. The sole director and 100% shareholder shows complete control, which simplifies decision-making but concentrates risk. Given the micro-entity scale, no employees, and low asset base, the company’s ability to service substantial debt is limited but likely sufficient for small credit lines or trade credit.

2. Financial Strength: The balance sheet shows minimal fixed assets (£180) and current assets of £3,345, mostly presumably cash or receivables. Current liabilities stand at £1,540, resulting in net current assets of £1,805. Shareholders’ funds equal net assets at £1,985, indicating no long-term liabilities or provisions. The financial position is stable but very modest in scale, typical of a start-up in software development. The lack of audit and micro-entity status limit detailed insight, but no adverse flags emerge.

3. Cash Flow Assessment: Current asset to current liability ratio is approximately 2.17, reflecting good short-term liquidity and working capital sufficiency. The absence of employees implies low fixed overheads, reducing cash burn risk. However, with limited history and no disclosed profit & loss figures, cash flow sustainability depends heavily on continued business development and client payments. Liquidity appears adequate for current operations but may be strained if credit facilities or significant expenditure are required.

4. Monitoring Points:

• Track revenue growth and profitability in future filings to assess operational scalability.
• Monitor any increase in liabilities that could pressure liquidity.
• Watch director’s ongoing involvement and any changes in ownership or control.
• Ensure timely filing of accounts and confirmation statements to maintain regulatory compliance.
• Review cash flow statements in subsequent reports for evidence of positive operating cash generation.