COUNTERARCHITECTURE LTD

Executive Summary

COUNTERARCHITECTURE LTD shows stable but minimal financial resources typical of a micro-entity in specialised design. The company maintains a positive working capital position but has experienced a decline in equity and current assets over the last year. Conditional credit approval is recommended with ongoing monitoring of liquidity and financial performance to mitigate risks related to its small scale and short trading history.

COUNTERARCHITECTURE LTD - Analysis Report

Company Number: 14193551

Analysis Date: 2025-07-29 12:34 UTC

1. Credit Opinion: CONDITIONAL APPROVAL
   COUNTERARCHITECTURE LTD is a micro private limited company with a short operating history (incorporated June 2022) and modest financial data. The company demonstrates a positive net working capital position and positive shareholders’ funds, indicating a basic level of financial stability. However, the decline in current assets and shareholders’ funds from 2023 to 2024 suggests some erosion of liquidity and equity. Given the small scale and limited financial history, credit approval should be conditional on monitoring future financial performance and cash flow stability, especially as no employees are reported and the business activity is specialised design.

2. Financial Strength:

• Shareholders’ funds have decreased from £14,044 in 2023 to £10,218 in 2024, showing a shrinkage in net equity.
• Current assets fell from £21,307 to £13,120, while current liabilities decreased from £6,863 to £2,502, improving the net current assets (working capital) position from £14,444 to £10,618.
• The company holds no fixed assets, and no long-term liabilities are reported, consistent with micro entity status.
• Overall, the balance sheet shows a lean operation with modest equity and limited resources, which may constrain the ability to absorb financial shocks.

3. Cash Flow Assessment:

• Current assets primarily consist of cash or equivalents and debtors, but the accounts provide no detailed cash flow statement.
• Net current assets remain positive, indicating the company can meet short-term obligations as they fall due.
• The decline in current assets alongside reduced liabilities suggests some cash outflow or reduced receivables, which warrants attention.
• The absence of employees and the nature of the business imply low operating costs, which may support liquidity, but lack of diversification or scale is a risk.

4. Monitoring Points:

• Quarterly updates on cash balances and receivables to ensure liquidity is maintained.
• Profitability trends and any changes in shareholders’ funds or net assets to detect early signs of financial stress.
• Client concentration and payment patterns to assess risk of delayed payments or bad debts.
• Any changes in business scale, employee numbers, or capital structure that may impact credit risk.
• Timely filing of statutory accounts and confirmation statements to maintain regulatory compliance.