COOKIE CONSULTING LTD

Executive Summary

Cookie Consulting Ltd exhibits sustained financial weakness characterized by negative net assets and liquidity shortfalls, raising significant credit risk concerns. The company’s current financial position and cash flow constraints limit its ability to service debt or withstand economic pressures. Credit facilities are not recommended without substantial improvement or external support.

COOKIE CONSULTING LTD - Analysis Report

Company Number: SC680469

Analysis Date: 2025-07-29 16:28 UTC

1. Credit Opinion: DECLINE

Cookie Consulting Ltd displays significant financial distress. The company has reported persistent negative net current assets and shareholders' funds over the last four years, with net current liabilities exceeding £60,000 in the most recent period. This indicates an inability to cover short-term obligations with current assets, suggesting liquidity issues. The negative equity position reflects accumulated losses and a weak balance sheet. Given the company’s micro size and very limited fixed assets and cash resources, its capacity to service additional debt or credit is highly constrained. There is no audit assurance, and only one employee, which may point to limited operational scale and resilience. The director is the sole controlling party, which concentrates operational risk and may limit governance oversight. These factors collectively raise high credit risk and limit the company’s ability to withstand economic or operational shocks.

2. Financial Strength:

The balance sheet reveals consistent and material negative net assets (£-44,130 in 2023) and negative net working capital (£-60,272). Fixed assets have declined from £32,285 in 2020 to £16,142 in 2023, indicating possible asset disposals or depreciation with no significant reinvestment. Current liabilities remain high relative to current assets, driven by creditors over £65,000. The equity deficit has worsened slightly, reflecting ongoing losses or accumulated deficits. The company is undercapitalized with minimal share capital (£50). Overall, the financial structure is weak with no buffer to absorb losses or finance growth.

3. Cash Flow Assessment:

Current assets of £4,892 largely represent cash and receivables, which are insufficient to cover current liabilities due within one year (£65,164). Negative net current assets indicate ongoing liquidity risk, potentially leading to payment delays or defaults. The absence of detailed cash flow statements limits insight into operating cash generation, but the working capital position signals strained cash flow management. The company’s ability to meet short-term debt or supplier payments without external support is doubtful.

4. Monitoring Points:

• Monitor liquidity ratios closely, especially current ratio and quick ratio trends.
• Track improvements or deterioration in net working capital and equity position.
• Review any changes in creditor balances or payment terms.
• Watch for director or related party transactions given sole control.
• Assess any filings or announcements indicating restructuring or funding injections.
• Monitor compliance with filing deadlines, although currently up to date.