COWLEYLEGAL LIMITED

Executive Summary

Cowleylegal Limited currently presents a low risk profile with positive net assets and compliance with filing requirements. The company’s micro-entity status and modest capital base limit its operational scale but do not indicate immediate solvency or liquidity concerns. The key focus should be on understanding the recent reduction in net assets and reviewing governance structures.

COWLEYLEGAL LIMITED - Analysis Report

Company Number: SC682377

Analysis Date: 2025-07-29 20:32 UTC

1. Risk Rating: LOW

   Cowleylegal Limited shows a stable financial position with positive net current assets and shareholders' funds over recent years. The company is current on all filings and not in any form of insolvency or liquidation. The business size is micro, which aligns with its modest financial figures and operational scale.

2. Key Concerns:

   • Declining net assets: Shareholders' funds have decreased from £16,934 in 2023 to £11,468 in 2024, indicating some erosion of capital that warrants monitoring.
   • Limited scale and capital: Being a micro-entity with only £1,000 share capital and small fixed assets may limit the company's ability to absorb significant financial shocks.
   • Concentration of control: All directors share the same surname, suggesting family control; while not inherently risky, this may affect governance diversity and operational resilience.

3. Positive Indicators:

   • Positive net current assets and shareholders’ funds throughout the period indicate solvency and ability to meet short-term obligations.
   • Up-to-date statutory filings with no overdue accounts or confirmation statements, indicating good regulatory compliance.
   • The company operates in professional service sectors (financial management, accounting, legal activities) that tend to have stable demand and relatively low capital intensity.

4. Due Diligence Notes:

   • Investigate reasons for the drop in net assets between 2023 and 2024, such as losses or increased liabilities.
   • Review cash flow statements if available to assess liquidity beyond balance sheet snapshots.
   • Confirm whether the director appointments reflect active engagement or if any operational roles are outsourced.
   • Explore governance practices given the family-related directorships to assess decision-making robustness.