COLLABORATIVE ROBOTICS LIMITED

Executive Summary

Collaborative Robotics Limited faces high financial risk characterized by negative working capital and shareholders' funds, declining cash balances, and reliance on director loans for funding. While regulatory compliance is maintained, the company’s liquidity and solvency position raise significant concerns regarding its operational sustainability without additional capital or improved cash flows. Further detailed financial analysis and operational review are recommended to ascertain future viability.

COLLABORATIVE ROBOTICS LIMITED - Analysis Report

Company Number: 12734439

Analysis Date: 2025-07-29 19:28 UTC

1. Risk Rating: HIGH
   Collaborative Robotics Limited demonstrates significant solvency and liquidity concerns as evidenced by persistent negative net current assets and shareholders' funds deteriorating from positive to negative over recent years. The modest cash balances relative to current liabilities and reliance on director loans for funding exacerbate risk.

2. Key Concerns:

• Negative Net Current Assets & Shareholders' Funds: The company has reported net current liabilities of £5,797 at 31 July 2024 and shareholders’ deficit of £4,099, indicating inability to cover short-term obligations with current assets.
• Declining Liquidity: Cash reserves have decreased sharply from £16,009 in 2020 to £1,687 in 2024, signaling potential cash flow stress.
• Director Loans as Financing: The outstanding director loan balance increased to £14,804 in 2024, suggesting dependency on related party funding to sustain operations. This loan is unsecured and repayable on demand, which may impair financial stability if repayment is requested.

3. Positive Indicators:

• No Overdue Filings: The company is up to date with both accounts and confirmation statement filings, evidencing regulatory compliance.
• Stable Management Team: The same two directors have been in place since incorporation, which may provide operational continuity.
• Active Website and Contact Details: Presence of an active website and official contact details supports transparency and ongoing operations.

4. Due Diligence Notes:

• Review detailed profit and loss data (not provided) to understand revenue trends, gross margins, and expense structure.
• Investigate the terms and sustainability of the director loan, including any plans for repayment or refinancing.
• Assess cash flow forecasts and working capital management strategies to evaluate short-term liquidity outlook.
• Confirm the absence of any outstanding legal or regulatory issues beyond those apparent from filings.
• Evaluate business model viability given losses and funding dependency, including pipeline for new contracts or orders.