COMPUTER CONCERN LIMITED

Executive Summary

Computer Concern Limited is a small, newly incorporated IT service provider showing recent financial strain with negative net assets and depleted cash reserves. The company’s creditworthiness depends on continued director/shareholder support and improvement in cash flow. Credit approval should be conditional with close monitoring of liquidity and profitability trends to mitigate risk.

COMPUTER CONCERN LIMITED - Analysis Report

Company Number: 13548487

Analysis Date: 2025-07-20 14:30 UTC

1. Credit Opinion: CONDITIONAL APPROVAL
   Computer Concern Limited is an active, small private limited company operating in IT repair and consultancy services. The financials reveal a recent deterioration in net assets and liquidity, with net current liabilities of £369 at the latest year-end (July 2024) versus net current assets of £186 the prior year. Shareholders’ funds have turned negative (£-369), indicating erosion of equity. However, the company is supported by its directors/shareholders who have provided director loans (£69). Given its short operating history (incorporated 2021), small scale, and negative working capital, credit should be extended cautiously and likely on a secured or limited exposure basis with ongoing monitoring. The absence of employees and reliance on directors’ funding suggest limited operating scale and potential vulnerability to cash flow shocks.

2. Financial Strength:
   The balance sheet is weak with no fixed assets net of depreciation at year-end 2024 and negative net assets. Current liabilities exceed current assets, resulting in negative working capital. The company’s equity position has eroded from +£277 (2023) to -£369 (2024), primarily due to accumulated losses reflected in the profit and loss reserve. The director loans (£69) partially fund current liabilities but are relatively small. The company’s capital base is minimal (£100 share capital). Overall, financial strength is low and does not provide a buffer for financial stress or growth investment.

3. Cash Flow Assessment:
   Cash at bank depleted to zero by July 2024 from £432 in 2023, indicating liquidity tightening. Current liabilities are modest (£369) but exceed available cash and current assets, leading to negative net current assets. No employees imply low operating overheads, but also limited scale to generate cash flow. Director loans indicate reliance on shareholder funding rather than external finance. The company’s ability to meet short-term obligations depends heavily on continued director support and efficient cash management. No audit was required, and the accounts indicate the company is a going concern with backing from shareholders.

4. Monitoring Points:

• Cash position and liquidity trends going forward, especially given zero cash on hand at latest year-end.
• Profitability and turnover growth to rebuild equity and working capital.
• Director loan balances and any additional shareholder funding.
• Timely filing of next accounts and confirmation statements to assess ongoing compliance and financial health.
• Any changes in operational scale, staff, or business model impacting cash flow or credit risk.
• Monitor sector risks in IT repair and consultancy, including competitive pressures and technological changes.