COY DEVELOPMENTS LTD

Executive Summary

COY DEVELOPMENTS LTD demonstrates significant solvency risks with persistent negative net assets and net current liabilities, compounded by related party creditor reliance. While regulatory compliance is satisfactory, the company’s financial position suggests potential liquidity challenges. Further due diligence on cash flows, related party transactions, and operational viability is recommended to evaluate investment risk adequately.

COY DEVELOPMENTS LTD - Analysis Report

Company Number: 13278449

Analysis Date: 2025-07-29 19:10 UTC

1. Risk Rating: HIGH
   The company exhibits persistent net current liability and negative net asset positions over multiple years, indicating solvency concerns. The reliance on group undertakings for significant creditor balances and ongoing losses raise red flags on financial stability.

2. Key Concerns:

• Negative net assets and shareholders’ funds as of the latest accounts (£-3,912), reflecting ongoing accumulated losses.
• Net current liabilities of £3,912 as of June 2024, showing the company’s inability to meet short-term obligations with current assets.
• Substantial amounts owed to group undertakings (£7,789) and tax liabilities (£4,054), signaling dependency on related parties and potential cash flow strain.

3. Positive Indicators:

• The company is compliant with filing requirements; no overdue accounts or confirmation statements, reflecting good regulatory compliance to date.
• Active status with a clear registered office and professional corporate secretary appointed, suggesting governance structures are in place.
• Slight improvement in net current liabilities from £6,757 in 2023 to £3,912 in 2024, indicating some progress in working capital management.

4. Due Diligence Notes:

• Investigate the nature and terms of amounts owed to group undertakings to assess the sustainability and risk of related party loans/creditors.
• Review detailed cash flow statements or management accounts (not provided) to understand liquidity dynamics beyond balance sheet snapshots.
• Assess future business plans, revenue streams, and capital injection prospects since the company operates in real estate development—a capital-intensive sector requiring stable financing.
• Confirm no director disqualifications or adverse governance issues beyond the data presented.