CODED GROUP LTD

Executive Summary

CODED GROUP LTD, a micro private company limited by guarantee, shows signs of financial stress with operating losses and minimal net assets. While regulatory compliance is current and the IT consultancy sector is promising, the company’s liquidity position and operational sustainability warrant close scrutiny. Further due diligence on cash flows and business viability is recommended before investment consideration.

CODED GROUP LTD - Analysis Report

Company Number: 13112609

Analysis Date: 2025-07-20 14:01 UTC

1. Risk Rating: HIGH
   Justification: The company shows a negative operating result for the latest financial year, with minimal current assets and extremely low net assets, indicating potential solvency and liquidity risks.

2. Key Concerns:

• The company reported a deficit of £3,672 in the latest year despite a modest turnover of £77,632, showing operational losses and lack of profitability.
• Current assets have drastically decreased from £3,968 in the prior year to only £296, with no current liabilities, suggesting a significant cash depletion and possible liquidity stress.
• The company is structured as a private company limited by guarantee with no share capital, which may limit capital raising options and increase reliance on director funding or external borrowing.

3. Positive Indicators:

• The company is compliant with filing requirements with no overdue accounts or confirmation statements, indicating good regulatory adherence.
• It operates in the IT consultancy sector (SIC 62020), a generally resilient industry with growth potential.
• The director is singular, which may simplify governance and decision-making processes.

4. Due Diligence Notes:

• Investigate the reasons behind the steep decline in current assets and whether the company has access to additional funding or credit lines to support operations.
• Review cash flow statements and bank reconciliations to confirm liquidity status beyond the balance sheet snapshot.
• Assess the sustainability of business operations given recurring operating losses and small scale (micro entity with only one employee).
• Understand the company’s business model and client base to evaluate prospects for revenue growth and profitability improvement.
• Confirm absence of contingent liabilities or off-balance sheet obligations that could impact financial stability.