COPYWRITING.IO LTD

Executive Summary

COPYWRITING.IO LTD has experienced a rapid decline in financial health within one year, moving into net liabilities and negative working capital. The company’s cash depletion and absence of tangible assets raise significant concerns about its ability to service debt and maintain operations. Credit approval is not recommended without substantial evidence of financial recovery and improved cash flow.

COPYWRITING.IO LTD - Analysis Report

Company Number: 14248680

Analysis Date: 2025-07-29 18:47 UTC

1. Credit Opinion: DECLINE
   COPYWRITING.IO LTD exhibits significant financial deterioration over the last year. The company has moved from a positive net asset position (£16,916 in 2023) to a net liability position (-£2,407 in 2024), indicating insolvency on a balance sheet basis. Additionally, the current liabilities exceed current assets, resulting in negative net current assets (-£2,407), which raises concerns about liquidity and the company’s ability to meet short-term obligations. The presence of bank overdrafts and director loans on the creditor side further stresses cash flow constraints. Given the absence of employees and the decline in tangible fixed assets, the business appears to be downsizing or winding down operations. These factors collectively suggest elevated credit risk and insufficient financial capacity to service new or existing debt.

2. Financial Strength:
   The balance sheet reveals a weakening financial position. Total assets less current liabilities have declined dramatically from £17,165 to a negative £2,407. The company has no tangible fixed assets as of 2024, having disposed of prior assets. Shareholders' funds have moved from positive £16,916 to a deficit of £2,407, indicating accumulated losses exceeding equity. The negative net current assets position highlights working capital deficiency. No retained earnings or profit reserves are reported for the last year, suggesting operating losses or write-downs. The company’s capital structure is weak, with minimal share capital (£1) and reliance on director loans and bank overdrafts, which may lack formal security.

3. Cash Flow Assessment:
   Cash at bank and in hand has fallen from £38,237 in 2023 to zero in 2024, implying cash depletion. Current liabilities now include bank loans and overdrafts (£1,156) and taxation/social security costs (£1,226), which require prompt settlement. The lack of debtors in 2024 compared to £1,999 in 2023 suggests reduced incoming cash or uncollected revenue. The negative working capital position signals the company does not have sufficient liquid resources to cover short-term debts. Absence of employees suggests limited operational activity, which could further restrict cash inflows. Overall, the cash flow situation is weak, increasing the risk of default on payment obligations.

4. Monitoring Points:

• Monitor updated accounts and cash flow statements to confirm if the negative equity and liquidity issues persist or worsen.
• Track director loan accounts and any new borrowings that might indicate increased leverage or reliance on informal funding.
• Review any business plans or restructuring efforts to restore profitability and positive net assets.
• Watch for overdue filings, creditor pressures, or signs of insolvency proceedings given the current financial distress.
• Evaluate management actions regarding cost control and revenue generation to improve cash flow.