COM ENTERPRISES LTD

Executive Summary

COM ENTERPRISES LTD exhibits a distressed financial position characterized by high liabilities and negative net assets, underscoring weak liquidity and poor capacity to meet short-term obligations. The company’s minimal current assets and absence of employees further impair its operational cash flow, making additional credit exposure inappropriate at this time. Continuous monitoring of debt restructuring and capital infusion is essential to reassess credit viability in the future.

COM ENTERPRISES LTD - Analysis Report

Company Number: 14193814

Analysis Date: 2025-07-29 15:14 UTC

1. Credit Opinion: DECLINE
   COM ENTERPRISES LTD demonstrates significant financial strain with current liabilities exceeding current assets by a large margin (£620,187 liabilities vs. £6,816 assets in 2024). The company shows a substantial net current liability position (negative working capital) that persists across the years, indicating difficulty in meeting short-term obligations. Despite holding fixed assets valued at approximately £600k, the liabilities due within one year and after more than one year cumulatively outweigh total assets, resulting in overall negative net asset figures (approximately -£610k). The lack of employees and minimal current assets suggest limited operational activity and cash inflows. Given these factors and the micro-entity scale, the company is unlikely to service additional credit facilities unless significant restructuring or capital injection occurs.

2. Financial Strength:
   The balance sheet reveals a heavy leveraged position. Fixed assets remain stable (~£600k), but current assets are very low (£6,816 in 2024) against very high current liabilities (£620,187). Total net assets are negative, reflecting that total liabilities exceed total assets by a large margin. Shareholders’ funds are negative and declining slightly year-over-year. The company operates with no employees and minimal working capital, indicating a fragile financial position and limited buffer to absorb shocks.

3. Cash Flow Assessment:
   Liquidity is critically weak. The negative net current assets indicate insufficient short-term assets to cover immediate liabilities. The company's cash or equivalents appear negligible, raising concerns about its ability to meet day-to-day operational costs or service debt. Without significant cash inflows or capital injections, the risk of default on obligations is high. The absence of employees suggests that the company might be inactive or minimally active, further limiting cash generation capacity.

4. Monitoring Points:

• Monitor changes in current liabilities and whether restructuring occurs to reduce short-term debt.
• Watch for improvements in current assets, particularly cash balances or receivables, to improve liquidity.
• Track any capital injections or shareholder loans that could strengthen equity and solvency.
• Review operational activity and revenue generation to assess whether cash flow improves.
• Keep an eye on director conduct and any governance changes, given control is heavily concentrated in one individual.