COOL SALES DIRECT LIMITED

Executive Summary

Cool Sales Direct Limited presents a low solvency and liquidity risk profile supported by positive net assets and current liquidity. However, a notable decline in net assets and minimal workforce size raise questions about operational sustainability. The company maintains good regulatory compliance and shows no immediate red flags from the available data.

COOL SALES DIRECT LIMITED - Analysis Report

Company Number: SC671079

Analysis Date: 2025-07-20 15:16 UTC

1. Risk Rating: LOW
   Cool Sales Direct Limited demonstrates consistent positive net assets and healthy working capital over the past years, with no overdue filings or indications of regulatory non-compliance. The company’s financial position indicates that it can meet its obligations, and operationally it appears stable with a micro-entity filing status.

2. Key Concerns:

• Declining Net Assets and Current Assets: Net assets have decreased from £46,578 in 2022 to £26,132 in 2024, and current assets dropped significantly, which could indicate reduced liquidity or shrinking operational scale.
• Minimal Share Capital: The company has a nominal share capital of only £2, which may limit its ability to raise equity quickly if needed.
• Limited Employment and Scale: With only one employee reported, the business may be highly dependent on key individuals, presenting operational concentration risk.

3. Positive Indicators:

• Strong Working Capital Position: Net current assets remain positive and substantial relative to current liabilities (£24,849 in 2024), indicating good short-term liquidity.
• On-Time Filing and Compliance: No overdue accounts or confirmation statements, showing good regulatory compliance and governance.
• Active Website and Business Presence: Website active and domain registered, suggesting ongoing business operations and engagement with customers or suppliers.

4. Due Diligence Notes:

• Investigate reasons behind the reduction in net assets and current assets over the last two years to assess sustainability and profitability trends.
• Confirm the operational model and dependency on the single employee and directors to evaluate key person risk.
• Review any off-balance sheet liabilities or contingent liabilities not disclosed in micro-entity accounts.
• Verify any related party transactions or director loans (noted small advances to directors) for potential conflicts of interest or financial strain.
• Explore the business’s revenue streams and client diversification given the limited scale and employee count.