CODE-EZ LTD

Executive Summary

CODE-EZ LTD is an early-stage micro-entity showing signs of financial distress, with zero turnover and operating losses in the most recent period alongside minimal current assets. While compliant with regulatory filings, its financial position highlights high solvency and liquidity risks. Further investigation into its business viability and funding position is recommended to assess potential for operational recovery.

CODE-EZ LTD - Analysis Report

Company Number: 14640006

Analysis Date: 2025-07-20 15:39 UTC

1. Risk Rating: HIGH
   Justification: CODE-EZ LTD is a recently incorporated micro-entity with minimal turnover and negative profitability in its latest financial year. The company reported zero turnover and a loss of £560 in the most recent period, with very limited current assets (£89) and no fixed assets. This signals significant operational and financial fragility, raising concerns about the company’s ability to meet obligations or sustain operations without external capital or revenue generation.

2. Key Concerns:

• Lack of Revenue: The company’s turnover dropped from £700 in the previous year to zero in the latest period, evidencing no sales or income generation currently.
• Operating Losses: A loss of £560 in the last period despite minimal costs indicates the business is not profitable and may be reliant on funding or shareholder support.
• Minimal Working Capital: Current assets reduced sharply from £780 to £89, while current liabilities appear nil now but were £130 previously, suggesting tight liquidity and limited resources to cover short-term obligations.

3. Positive Indicators:

• No Overdue Filings: The company is current with both accounts and confirmation statement filings, indicating compliance with Companies House requirements.
• Limited Liabilities: Absence of current liabilities in the latest year may reduce immediate solvency pressures.
• Experienced Directors: Both directors have relevant professional backgrounds (engineering consultant and software engineer), which may support future operational turnaround.

4. Due Diligence Notes:

• Investigate the reasons behind the drop to zero turnover and whether there is a viable plan or pipeline to generate future revenue.
• Assess the company’s cash flow situation and sources of funding, including director loans or external investment, to confirm short-term liquidity sufficiency.
• Review the business model and market environment for sustainability and the potential need for restructuring or additional capital injection.