CUBITUS CONSULTING LIMITED

Executive Summary

CubitUS Consulting Limited is currently operating with significant negative net assets and a large working capital deficit, raising high concerns about its solvency and liquidity. Although regulatory compliance is maintained and ownership is stable, the company's financial health depends heavily on director support. Further due diligence on operational cash flows and profitability is essential to assess the sustainability of the business.

CUBITUS CONSULTING LIMITED - Analysis Report

Company Number: 12447541

Analysis Date: 2025-07-29 12:09 UTC

1. Risk Rating: HIGH
   The company demonstrates a significant negative net asset position with net liabilities increasing from £7,754 in 2024 to £9,586 in 2025. Current liabilities substantially exceed current assets by a large margin, indicating solvency concerns. The minimal cash balance (£21) relative to current liabilities (£10,158) points to liquidity stress.

2. Key Concerns:

• Negative Equity and Increasing Net Liabilities: The persistent and growing shareholders' deficit reflects accumulated losses and inability to generate retained earnings, undermining solvency.
• Working Capital Deficiency: Current liabilities exceed current assets by a factor of approximately 18 times, suggesting the company lacks sufficient short-term assets to meet obligations as they fall due.
• Dependence on Director Support: The going concern statement relies on the director’s assurances to meet liabilities, indicating the business may not be self-sustaining operationally or financially without external funding or director intervention.

3. Positive Indicators:

• Compliance with Filing Requirements: The company’s annual accounts and confirmation statements are filed on time with no overdue filings or penalties noted, which reflects good regulatory compliance and governance.
• Stable Directorship and Ownership: The sole director and 100% shareholder is consistent, simplifying decision-making and control, which can be beneficial in turnaround scenarios.
• Micro-Entity Status and Small Size: The company qualifies for small company exemptions, reducing audit and reporting burdens, though this also limits the depth of available financial information.

4. Due Diligence Notes:

• Investigate Cash Flow Dynamics: Review detailed cash flow statements (not provided) to understand how the company is managing day-to-day liquidity and whether the director’s support has been consistent and sustainable.
• Assess Revenue and Profitability Trends: Obtain profit and loss account details to evaluate the root causes of sustained losses and whether there is a viable business plan to restore profitability.
• Director’s Financial Support and Plans: Verify the nature and extent of financial support from the director, including any loans or guarantees, and the strategic plans to improve financial health.