Company Number: 12992711

Analysis Date: 2025-07-29 15:04 UTC

Financial Health Assessment: COOL VILLAGE LIMITED

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1. Financial Health Score: D

Explanation:
The company currently exhibits clear symptoms of financial distress, including persistent net current liabilities and negative net assets over multiple years. While it remains active and dormant in filing status, the recurring deficit in working capital and net liabilities indicate weakened financial vitality. The absence of fixed assets and minimal share capital further limit the company’s financial robustness.

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2. Key Vital Signs

Metric	2024 Value	Interpretation
Fixed Assets	£0	No long-term assets to support business operations or collateral for financing.
Current Assets	£15,194	Modest short-term asset base, primarily cash or receivables.
Current Liabilities	£16,185	Obligations due within one year slightly exceed current assets, causing liquidity strain.
Net Current Assets	-£991	Negative working capital indicates the company may struggle to meet short-term obligations.
Net Assets (Equity)	-£991	Negative net worth signals liabilities exceed assets, a red flag for solvency concerns.
Share Capital	£100	Minimal capital invested by shareholders, limiting financial cushioning.
Account Category	Dormant	No significant trading activity, implying limited operating cash flows to improve finances.
Average Employees	1	Very small operational scale, indicating limited business activity or development phase.

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3. Diagnosis

COOL VILLAGE LIMITED shows symptoms of financial distress, primarily evidenced by persistent negative net current assets and net liabilities. The company has no fixed assets, which could otherwise serve as a base for borrowing or business growth. The financial position deteriorated slightly from 2023 to 2024, with net current liabilities widening from -£739 to -£991.

The dormant status indicates the company is not currently trading or generating operating cash flows, which explains the minimal asset base and growing liabilities. Negative equity suggests cumulative losses or persistent funding shortfalls, which may constrain future operations or investment.

The company is likely in an early or inactive stage, possibly a holding or shell entity within a larger group (noted 75-100% owned by Coolvillage Group Limited), which might explain limited financial activity.

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4. Recommendations

• Revitalize Business Activity or Formal Closure: Consider either restarting trading operations with a clear business plan to generate revenues and positive cash flow or explore formal closure if the company is no longer viable.
• Improve Liquidity Management: Address the negative working capital by negotiating longer payment terms with creditors or injecting short-term funds to cover liabilities.
• Capital Injection: Increase share capital or secure loans from the parent company or investors to improve equity and provide a financial buffer.
• Asset Acquisition: Acquire fixed assets or other value-generating resources to support operational growth and strengthen the balance sheet.
• Regular Monitoring: Maintain up-to-date filings and monitor financial indicators closely to avoid regulatory penalties and detect early signs of financial stress.
• Strategic Review: Engage with financial advisors to review long-term strategy within the group structure, including potential restructuring or consolidation to improve overall financial health.

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