CORK TREE TRADING LTD

Executive Summary

Cork Tree Trading Ltd is a micro-entity engaged in retail sales via internet/mail order, showing a recent turnaround with positive net current assets and maintained regulatory compliance. Its financial and operational scale is small, with sole control by one director, suggesting stability but limited financial flexibility. Further due diligence on cash flows and business sustainability is recommended to fully assess long-term viability.

CORK TREE TRADING LTD - Analysis Report

Company Number: 12944735

Analysis Date: 2025-07-29 20:49 UTC

1. Risk Rating: LOW
   Cork Tree Trading Ltd exhibits a low risk profile based on the latest available data. The company shows positive net current assets and net assets, timely filing history, and no indications of insolvency or compliance issues.

2. Key Concerns:

• Thin Capital Base: Share capital remains nominal at £1.00, which may limit financial flexibility.
• Micro Entity Scale: The company operates with minimal employees (1) and limited fixed assets, which may restrict operational scalability.
• Reliance on a Single Director/PSC: Control and management are concentrated in one individual, which could pose governance risks.

3. Positive Indicators:

• Improved Financial Position in 2024: Net current assets improved to £2,411 from a negative position in previous years, indicating better liquidity.
• Consistent Compliance: No overdue filings for accounts or confirmation statements, demonstrating good regulatory adherence.
• Stable Ownership and Management: The sole director and PSC, Ms. Farzana Siddique, has maintained consistent involvement since incorporation, suggesting stable leadership.

4. Due Diligence Notes:

• Review the detailed cash flow statements and profit & loss accounts (not provided) to assess operational cash generation and sustainability.
• Investigate the nature and sufficiency of current assets, particularly receivables and cash balances, to confirm liquidity quality.
• Evaluate the business model in retail mail order/internet sales for market risks and competitive positioning, given the small scale of operations.
• Confirm there are no undisclosed contingent liabilities or off-balance-sheet obligations.
• Consider the impact of minimal fixed assets on operational stability and future capital expenditure needs.