COTACK LTD

Executive Summary

COTACK LTD is a newly formed dormant company with minimal financial activity, reflected by nominal cash and equity balances. While regulatory compliance is sound, the lack of operational financial data indicates the company is in a pre-trading phase. To improve financial health, the company should commence trading, build working capital, and implement financial planning for sustainable growth.

COTACK LTD - Analysis Report

Company Number: 15679597

Analysis Date: 2025-07-29 16:39 UTC

Financial Health Assessment for COTACK LTD

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1. Financial Health Score: Grade D

Explanation:
COTACK LTD is a newly incorporated company (April 2024) classified as dormant with minimal financial activity reflected in its first year accounts. The financial metrics show extremely limited operational engagement, with only £1 in cash and net assets. This results in a low financial health score (D) indicating no current trading activity or revenue generation. While not a sign of distress at this stage, it reflects a lack of business operational "vital signs." The company is not overdue on filings and complies with regulations, which is a positive procedural sign.

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2. Key Vital Signs

Metric	Value	Interpretation
Company Status	Active	Company is legally operational and registered.
Account Category	Dormant	No significant financial transactions during the year; no trading activity recorded.
Cash at Bank	£1	Indicates negligible operational cash flow.
Net Assets	£1	Minimal equity base, reflecting the nominal share capital only.
Shareholders’ Funds	£1	Sole shareholder invested nominal capital; no retained earnings or reserves.
Filing & Compliance	Up to date	Accounts and returns filed within deadlines; no penalties.
Ownership Structure	100% owned by Director	Single controller with full voting rights and appointment powers.
Industry Classification	Wholesale of coffee, tea, cocoa, spices, sugar, and confectionery	Planned sector of activity, though no trading yet.

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3. Diagnosis: Financial "Patient" Status

COTACK LTD is currently in a "pre-operational" or "hibernation" phase, akin to a patient in incubation—alive but not yet active. The dormant status means the company has not conducted business, generated revenue, or incurred expenses during its first financial year. This is common for newly formed entities preparing for future operations or awaiting market conditions.

The financial "symptoms" here are the absence of trading cash flow and zero operational assets or liabilities beyond the nominal share capital. The company is compliant with regulatory requirements, which suggests good corporate governance and no immediate risks of penalties or insolvency.

However, the company lacks any financial robustness indicators such as working capital, profitability, or asset base that would signify business activity or growth potential at this stage.

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4. Recommendations for Financial Wellness Improvement

• Activate Business Operations: Begin trading activities to generate revenues and establish cash flow. Dormancy is sustainable short-term but not a long-term business strategy.
• Build Working Capital: Once operational, monitor and build current assets (cash, receivables, inventory) to cover current liabilities and ensure liquidity.
• Maintain Compliance: Continue timely filing of accounts and confirmation statements to avoid penalties and maintain company good standing.
• Financial Planning: Develop budgets and forecasts to track financial performance, identify funding needs, and plan for sustainable growth.
• Consider External Funding: Explore equity investment or credit facilities to support initial trading activities and capital expenditure.
• Regular Financial Review: Conduct periodic financial health checks to identify early symptoms of distress, such as cash flow shortages or rising liabilities.

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