CODING WITH CODEX LTD

Executive Summary

Coding With Codex Ltd shows declining financial health with negative net assets and minimal working capital, indicating weak creditworthiness and limited capacity to service debt. The company’s micro-entity status and lack of employees reduce operational resilience, and cash flow appears constrained. Credit extension is not recommended without significant improvement in financial stability and liquidity.

CODING WITH CODEX LTD - Analysis Report

Company Number: 13268856

Analysis Date: 2025-07-29 18:02 UTC

1. Credit Opinion: DECLINE
   Coding With Codex Ltd presents financial fragility that raises significant concerns about its ability to meet credit obligations. The latest accounts show negative net assets (£-558) and shareholders' funds, indicating an erosion of capital and potential insolvency risks. The absence of employees and minimal current assets (£2,592) limit operational resilience and cash generation capacity. Given the micro-entity status and lack of audit, financial transparency and robustness are limited. Without evidence of profitability or cash inflows to reverse losses, extending credit carries high risk.

2. Financial Strength:
   The balance sheet reveals declining net current assets from £2,002 in 2023 to £612 in 2024, and a shift from positive net assets of £1,222 to negative £558 over the same period. Accruals and deferred income increased from £780 to £1,170, further straining resources. The company’s capital base is weak, with only £100 in share capital and accumulated losses eroding equity. The negative net assets position flags potential solvency issues and reduced buffer against future losses or liabilities.

3. Cash Flow Assessment:
   Current assets are very low at £2,592, barely covering current liabilities of £2,080, resulting in a modest working capital cushion of £612. The micro-entity has no employees, suggesting limited operational activity and likely constrained cash inflows. The increase in accruals and deferred income may reflect timing mismatches in revenue recognition or prepaid expenses. Overall, liquidity appears tight, with minimal cash reserves to absorb shocks or support debt servicing.

4. Monitoring Points:

• Monthly cash flow and liquidity position to detect any deterioration.
• Timely filing of next accounts and confirmation statements to ensure ongoing compliance and transparency.
• Any changes in capital structure or injection of new equity to restore positive net assets.
• Revenue trends and evidence of operational scaling to improve cash generation capacity.
• Director stability and governance practices, especially given recent resignations and small management team.