Company Number: 12935444

Analysis Date: 2025-07-20 14:00 UTC

1. Risk Rating: HIGH
   CORTECH HOLDINGS LIMITED exhibits significant solvency and liquidity concerns as evidenced by persistent negative net assets and shareholders' funds, alongside current liabilities exceeding current assets resulting in negative working capital. The company’s financial position deteriorated notably from 2021 to 2022, with net liabilities increasing substantially. These factors indicate a high risk of financial distress.

2. Key Concerns:

• Negative Net Assets and Shareholders' Funds: The company reported net assets of -£218,591 and shareholders’ funds of -£819,431 as of June 2022, worsening from prior years, signaling accumulated losses and potential insolvency risk.
• Liquidity Deficit: Current liabilities (£667,461) significantly exceed current assets (£145,925), resulting in a negative net current asset position (-£10,077), which raises concerns about the company’s ability to meet short-term obligations.
• High Long-Term Creditors: The large balance of creditors falling due after more than one year (£667,461) suggests the company has substantial debt obligations that may strain cash flow and operational stability if not properly managed.

3. Positive Indicators:

• No Overdue Filings: The company’s accounts and confirmation statement filings are up to date, indicating compliance with filing requirements and no regulatory red flags in this regard.
• Stable Directorship: The directors have been in place since incorporation with no public record of disqualifications or governance issues, which supports continuity in management.
• Micro-Entity Reporting: As a micro-entity, the company benefits from simplified reporting requirements, potentially reducing compliance burdens.

4. Due Diligence Notes:

• Examine Debt Structure: Investigate the nature and terms of the company’s creditors, especially those with amounts due after more than one year, to assess refinancing risk and covenant compliance.
• Review Cash Flow and Funding Sources: Clarify the company’s cash flow generation capability and any external funding arrangements that support ongoing operations given the liquidity shortfall.
• Assess Intangible Assets Valuation: Confirm the recoverability and valuation basis of the significant intangible assets (£458,416), as impairment could further weaken the balance sheet.
• Evaluate Business Model Viability: Understand the company’s operational strategy and revenue generation, particularly in its niche of research and manufacture of medical/dental instruments, to gauge sustainability.
• Director and PSC Background Checks: Although no disqualifications are reported, further background checks on directors and persons with significant control may be prudent given the financial distress signals.