Company Number: SC679188

Analysis Date: 2025-07-29 20:49 UTC

1. Risk Rating: MEDIUM

Justification: Code Disciple Limited is a micro-entity with a short operating history (incorporated in late 2020). The most recent financials show a significant reduction in current assets and a net current liability position, indicating potential liquidity stress. However, the company remains solvent with positive shareholders’ funds. The absence of employees and limited fixed assets suggest a low operational scale which may impact sustainability.

2. Key Concerns:

• Decline in liquidity: Current assets dropped sharply from £1,707 in 2022 to £355 in 2023, resulting in net current liabilities of £76, which may affect the company’s ability to meet short-term obligations.
• Shrinking net assets: Total assets less current liabilities fell from £2,311 in 2022 to £591 in 2023, reflecting a material erosion of the company’s financial buffer.
• Lack of operational scale: No employees reported and minimal fixed assets imply limited operational capacity, raising questions about the company’s ability to generate sustainable revenue.

3. Positive Indicators:

• Compliance: All statutory accounts and confirmation statements are filed on time, indicating good governance and regulatory compliance.
• Solvency intact: Despite liquidity concerns, shareholders’ funds remain positive at £591, suggesting the company is not insolvent at present.
• Clear ownership and governance: Single director and sole shareholder with transparent control reduces complexity and potential governance risks.

4. Due Diligence Notes:

• Investigate the cause of the large decline in current assets and whether this is a one-off event or indicative of ongoing cash flow difficulties.
• Review revenue and profit generation trends, as income statements are not publicly filed; assess business model viability given no employees.
• Confirm director’s plans and financial support for the company to withstand short-term liquidity pressures and ensure operational continuity.
• Check for any contingent liabilities or off-balance-sheet risks that could impact solvency.