CODE DISCIPLE LIMITED

Executive Summary

Code Disciple Limited shows signs of liquidity strain with a significant drop in current assets leading to net current liabilities, although it remains solvent on a balance sheet basis. The company operates on a small scale with no employees and minimal assets, which raises concerns about operational sustainability. Timely filings and clear governance are positives, but further due diligence on cash flow and business prospects is recommended.

CODE DISCIPLE LIMITED - Analysis Report

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.