DEC0DE CONSULTING LTD

Executive Summary

DEC0DE CONSULTING LTD's financial position has weakened notably with negative working capital and a sharp decline in net assets, creating liquidity concerns. Absent signs of financial recovery or stronger cash flow, the company currently poses a high credit risk. Close monitoring of liquidity and management actions is essential before considering credit facilities.

DEC0DE CONSULTING LTD - Analysis Report

Company Number: 13592587

Analysis Date: 2025-07-19 12:32 UTC

1. Credit Opinion: DECLINE
   DEC0DE CONSULTING LTD shows a deteriorating financial position over the last two years with net assets halving from £18,642 in 2023 to £8,610 in 2024. The company has moved from a net current asset position to a net current liability position of £7,099 in 2024, indicating liquidity stress. This weakening working capital suggests potential difficulty in meeting short-term obligations. The declining fixed assets and shareholders’ funds reinforce concerns over financial stability. Without evidence of recent profitability or improved cash flow, extending credit carries elevated risk.

2. Financial Strength:
   The company falls within the micro category with a small asset base (£16,612 fixed assets) and shrinking net assets (£8,610 as of August 2024). The net current liabilities of £7,099 indicate working capital deficits, which is a red flag for liquidity management. Shareholders’ funds have declined sharply from £31,967 at inception to £8,610, suggesting accumulated losses or withdrawals. The balance sheet shows a fragile equity base, limiting the company’s ability to absorb financial shocks.

3. Cash Flow Assessment:
   Current liabilities exceed current assets, resulting in a negative working capital position. This indicates that the company may struggle to cover short-term liabilities from its liquid resources. The average employee count remains low (2), which may keep operating expenses minimal; however, the drop in current assets and increase in creditors signal cash flow constraints. No cash flow statements are provided, but the working capital trend implies liquidity risk.

4. Monitoring Points:

• Track quarterly cash flow reports to assess liquidity improvements or further deterioration.
• Review any upcoming accounts and confirmation statement filings for timely compliance.
• Monitor receivables and payables aging to identify collection or payment delays.
• Assess management actions to restore net asset growth or improve working capital.
• Watch for any director changes or PSC updates indicating ownership or control shifts.