COPYTHORNE COMMUNITY CAFE LTD

Executive Summary

COPYTHORNE COMMUNITY CAFE LTD is a very small, early-stage business with a positive but modest profit and net asset position as of June 2024. While filings are timely and governance appears stable, the company’s limited scale and fluctuating liquidity metrics suggest some medium-level financial risk. Further investigation into cash flows and business sustainability is recommended to better understand operational resilience.

COPYTHORNE COMMUNITY CAFE LTD - Analysis Report

Company Number: 14070771

Analysis Date: 2025-07-29 17:00 UTC

1. Risk Rating: MEDIUM
   The company shows modest profitability and a positive net asset position for the latest year, indicating initial operational viability. However, as a micro entity with very limited turnover (£37,729) and a small asset base, it remains vulnerable to cash flow shocks. The prior periods show volatile current liabilities and net current assets, reflecting some liquidity risk.

2. Key Concerns:

• Liquidity volatility: Current liabilities fluctuated significantly from £2,876 (2022) down to £373 (2024) with corresponding swings in net current assets, indicating potentially unstable short-term cash management.
• Low scale and limited financial buffer: The company operates on a small scale with turnover under £40k and net assets under £2k, leaving minimal margin for unexpected expenses or downturns.
• Limited operational history: Incorporated in 2022, the business is early stage, so sustainability and market position remain unproven from the data provided.

3. Positive Indicators:

• Profitability achieved: Despite small scale, the company reported a profit of £1,514 in the latest year, showing potential for operational sustainability.
• Compliance: Accounts and confirmation statements are filed on time with no overdue filings, reducing regulatory compliance risk.
• Stable ownership and governance: Two directors with equal significant control have stable and transparent shareholding and voting rights, indicating clear governance structure.

4. Due Diligence Notes:

• Review cash flow statements and bank balances to assess liquidity beyond the balance sheet snapshots.
• Investigate customer concentration and revenue trends to validate business sustainability and growth prospects.
• Understand the nature and timing of current liabilities to assess if they are trade creditors or financial debts.
• Clarify any related party transactions given the family involvement in control.
• Confirm ongoing financial support or credit facilities available to the company in case of cash flow stress.