CYTO-LINK LTD

Executive Summary

CYTO-LINK LTD demonstrates a low solvency and regulatory risk profile with positive net assets and timely filings. However, the decline in liquidity and limited financial disclosure warrant further investigation into operational profitability and cash flow sustainability. Overall, the company appears financially stable but small scale and limited transparency require cautious monitoring.

CYTO-LINK LTD - Analysis Report

Company Number: 12882262

Analysis Date: 2025-07-20 18:07 UTC

1. Risk Rating: LOW
   CYTO-LINK LTD exhibits a stable financial position with positive net current assets over multiple years and no overdue filings or indications of distress. The company operates within micro-entity accounting provisions, reflecting its small scale but consistent compliance and solvency.

2. Key Concerns:

• Declining current assets and net assets from £7,227 in 2023 to £4,221 in 2024 suggest a reduction in liquidity and capital base that warrants monitoring.
• Limited scale of operations with only 2 employees could imply vulnerability to operational disruptions or dependency on key personnel.
• Absence of a profit and loss account filing limits visibility on profitability or operational cash flows, restricting full assessment of financial health.

3. Positive Indicators:

• Solid net current assets and shareholders' funds indicate the company can meet short-term liabilities comfortably.
• No overdue accounts or confirmation statements, demonstrating good regulatory compliance and governance.
• Consistent classification as a micro-entity with stable employee numbers suggests operational continuity.

4. Due Diligence Notes:

• Obtain and review the profit and loss account or management accounts to evaluate profitability, revenue trends, and cash flow generation.
• Investigate reasons behind the decrease in current assets and net assets in the latest financial year to assess whether this reflects temporary factors or emerging risks.
• Clarify the nature and extent of the company’s contracts or business activities in the transportation support sector to understand revenue stability and customer concentration risks.
• Confirm the background and role of the director (also secretary) to ensure governance robustness given the small management team.