CONTINUO LTD

Executive Summary

CONTINUO LTD is a micro-entity with minimal equity and significant long-term liabilities, indicating elevated solvency and liquidity risks. While regulatory filings are current and the fixed asset base is stable, the lack of employees and limited financial disclosures raise concerns about operational sustainability. Further investigation into creditor terms and cash flow generation is recommended before investment consideration.

CONTINUO LTD - Analysis Report

Company Number: 13680517

Analysis Date: 2025-07-29 12:11 UTC

1. Risk Rating: HIGH
   The company shows a very minimal equity base (£1 share capital and shareholders funds) and significant long-term creditors (£18,000) compared to very low current assets (£1,478) and no current liabilities reported. This structure indicates high leverage and potential solvency risk. The absence of employees suggests limited operational scale.

2. Key Concerns:

• Solvency Risk: Net assets are nominal (£1), with long-term liabilities of £18,000, raising questions on the ability to meet obligations.
• Liquidity Constraints: Current assets (£1,478) only marginally exceed current liabilities (reported as zero but working capital is the same as current assets), indicating limited liquid resources to cover short-term expenses.
• Operational Scale and Sustainability: No employees and minimal turnover data (not provided), combined with micro-entity status, suggest the business may be in early development or not fully operational, raising concerns about long-term viability.

3. Positive Indicators:

• Timely Filing: Accounts and confirmation statements are up to date with no overdue filings, indicating regulatory compliance and good governance on filing duties.
• Stable Fixed Assets Base: Fixed assets increased slightly over the past years, suggesting some investment in business infrastructure or equipment.
• Experienced Directors: Directors’ backgrounds include software engineering and banking, which may be beneficial for operational and financial management.

4. Due Diligence Notes:

• Verify the nature and terms of the £18,000 long-term creditors to assess repayment obligations and impact on solvency.
• Investigate revenue streams and cash flow generation since turnover and profit/loss data are not disclosed.
• Assess business model viability, given no employees and micro-entity status, to understand sustainability and growth prospects.
• Confirm absence of contingent liabilities or related party transactions not reflected in the accounts.