CROISSANT LIFE LTD

Executive Summary

CROISSANT LIFE LTD is a new healthcare services company with a modest capital base and positive net assets. While it demonstrates regulatory compliance and a reasonable cash buffer, the relatively high short-term liabilities and absence of employees present liquidity and operational risks. Further due diligence on financing arrangements and operational structure is recommended to fully assess sustainability.

CROISSANT LIFE LTD - Analysis Report

Company Number: 15009076

Analysis Date: 2025-07-20 17:47 UTC

1. Risk Rating: MEDIUM
   CROISSANT LIFE LTD is a newly incorporated private limited company with modest net assets and positive working capital. However, the current liabilities are relatively high compared to net current assets, and the company is in its first financial year with limited operational history. These factors indicate moderate risk, especially in terms of cash flow management and operational stability.

2. Key Concerns:

• Liquidity Pressure: Current liabilities (£236,170) significantly consume current assets (£268,107), leaving a net current asset position of only £31,937. The high level of short-term loans (£187,165) raises concerns about the company’s ability to meet its immediate obligations without sustained revenue generation.
• Limited Operational Track Record: Incorporated in July 2023 and reporting its first accounts for a period ending March 2024, the company has no prior financial history to assess trends in revenue, profitability, or cash flow stability.
• No Employees Reported: The absence of employees, including directors, suggests the company might rely on contractors or external service providers. This could raise questions about operational capacity and the sustainability of ongoing activities.

3. Positive Indicators:

• Positive Net Assets and Shareholders’ Funds: The company shows net assets of £32,032 and shareholders’ funds of £32,032, indicating initial capital adequacy relative to reported assets and liabilities.
• No Overdue Filings or Compliance Issues: Both the annual accounts and confirmation statement are filed on time, indicating good regulatory compliance and governance practices to date.
• Strong Cash Position: Cash at bank of £163,022 represents a healthy liquidity buffer that, if managed prudently, can support near-term operational needs.

4. Due Diligence Notes:

• Examine Nature and Terms of Other Loans (£187,165): Clarify whether these are related party loans, bank borrowings, or other financing arrangements, including repayment schedules and interest obligations.
• Assess Revenue Streams and Client Concentration: Given the SIC codes related to medical and dental services, understanding the client base, contract stability, and revenue recognition policies is critical.
• Understand Operational Model: Investigate how the company delivers its human health services without employees reported, including the use of subcontractors or associates, to assess operational risk.
• Review Directors’ Backgrounds: Both directors have significant shareholding and control; it would be prudent to review their experience and any potential conflicts of interest or related-party transactions.
• Monitor Cash Flow Trends: Future interim financial information or management accounts would help assess cash flow sustainability and working capital management.