CUTTING EDGE PRINTS COOKSTOWN LTD

Executive Summary

Cutting Edge Prints Cookstown LTD is currently solvent with positive net assets and compliant with filing requirements. However, the sharp decline in cash reserves and net assets alongside no recorded employees introduces liquidity and operational risks that warrant further investigation before investment. Overall, the company presents a medium-risk profile based on the available financial data.

CUTTING EDGE PRINTS COOKSTOWN LTD - Analysis Report

Company Number: NI678638

Analysis Date: 2025-07-29 19:03 UTC

1. Risk Rating: MEDIUM
   The company shows modest net current assets and positive shareholders' funds, indicating solvency. However, the significant reduction in net assets and working capital from the prior year, combined with minimal cash on hand and no employees, raises concerns about liquidity and operational sustainability.

2. Key Concerns:

• Liquidity Risk: Cash on hand has dropped sharply from £7,955 in 2023 to only £76 in 2024, which could impair the company's ability to meet short-term obligations despite positive net current assets.
• Declining Net Assets: Shareholders' funds decreased from £24,173 to £11,763 within one year, indicating either losses or distributions that may weaken financial stability.
• No Employees Recorded: The absence of employees suggests potential operational limitations or reliance on external contractors, which may affect the company’s ability to generate consistent revenue.

3. Positive Indicators:

• Compliance: The company is active, with no overdue filings for accounts or confirmation statements, reflecting good regulatory compliance.
• Solvency: Positive net current assets (£4,640) and positive net assets indicate the company is solvent as of the latest accounts date.
• Director Stability: The sole director has been in place since incorporation with no adverse records, which supports governance consistency.

4. Due Diligence Notes:

• Investigate the cause of the significant reduction in net assets and working capital between 2023 and 2024 to assess profitability and capital management.
• Clarify the nature of the director loans (£11,688) which constitute a large part of current liabilities, including repayment terms and impact on cash flow.
• Understand the operational model given zero employees, and verify revenue generation capacity and client base sustainability.
• Review any contingent liabilities or off-balance sheet commitments not disclosed in the accounts.