Company Number: 12627292

Analysis Date: 2025-07-20 19:16 UTC

1. Credit Opinion: DECLINE
   The company’s latest accounts reveal significant financial distress with net liabilities of £31,555 as of 31 May 2024, deteriorating from £21,049 net liabilities the previous year. The company shows negative net current assets and substantial creditors due after one year (£30,000), indicating poor liquidity and unresolved long-term debts. Despite being active and filing on time, the financial position suggests inability to meet debt obligations reliably, raising high credit risk.

2. Financial Strength:
   COSTIFY LTD is a micro-entity with minimal fixed assets (£3,258) and very low current assets (£187), heavily outweighed by current liabilities (£5,000) and significant long-term creditors (£30,000). The net asset position is deeply negative (-£31,555), reflecting accumulated losses or funding gaps. The balance sheet shows a weakening trend compared to previous years when net liabilities were less severe but still negative. Such a capital structure undermines the company’s solvency and financial resilience.

3. Cash Flow Assessment:
   Current assets have plummeted from £2,608 in 2023 to £187 in 2024, while current liabilities remain a tangible burden. Negative net current assets (-£4,813) imply insufficient working capital to cover short-term obligations. The absence of significant cash or liquid assets raises concerns about the company’s ability to fund day-to-day operations or service debt without additional external support.

4. Monitoring Points:

• Closely monitor liquidity metrics, particularly current assets vs current liabilities.
• Watch for any additional long-term debt or creditor negotiations that may impact solvency.
• Track management changes and operating performance updates that could affect financial recovery.
• Assess any forthcoming filings or notices that might indicate further financial distress or restructuring efforts.