CYBERBOW STRATEGY LTD

Executive Summary

CYBERBOW STRATEGY LTD demonstrates significant financial stress as evidenced by its negative net assets and worsening liquidity position in the latest accounts. Reliance on director loans and negative working capital raise concerns about short-term cash flow and solvency. However, the company remains compliant with filing requirements and has stable management. Further investigation into financial strategy and operational outlook is recommended to assess viability.

CYBERBOW STRATEGY LTD - Analysis Report

Company Number: 12825416

Analysis Date: 2025-07-20 15:28 UTC

1. Risk Rating: HIGH
   The company shows a significant deterioration in net assets, moving from positive £611 in 2022 to negative £844 in 2023, primarily due to increased current liabilities. Negative net current assets and net liabilities indicate solvency and liquidity challenges.

2. Key Concerns:

• Solvency Deterioration: The net liabilities position suggests the company’s total liabilities exceed its assets, raising concerns about its ability to meet long-term obligations.
• Liquidity Pressure: Current liabilities have more than tripled from £576 to £1,777 whereas current assets have only marginally increased, resulting in negative working capital of £1,680. This may indicate cash flow difficulties.
• Director Loans Reliance: The increase in director loan from £576 to £1,777 (unsecured, interest-free, repayable on demand) suggests dependence on director funding to support operations, which may not be sustainable.

3. Positive Indicators:

• Timely Filings: The company has filed accounts and confirmation statements on time with no overdue filings, indicating compliance with regulatory requirements.
• Stable Management: The same director has been in place since incorporation with no reported disqualifications or governance issues.
• Micro-Entity Filing: As a micro-entity, the company benefits from reduced filing burdens, which is appropriate given its scale.

4. Due Diligence Notes:

• Investigate the nature and terms of the director loan and the company’s plan to repay or restructure this debt.
• Review the company’s cash flow forecasts and business model to assess operational sustainability given negative working capital and net liabilities.
• Obtain management commentary on the reasons behind the significant increase in current liabilities and the drop in net assets.
• Verify if there are any contingent liabilities or off-balance sheet obligations not reflected in the accounts.
• Examine future revenue streams or contracts to evaluate prospects for returning to profitability and positive net assets.