HOST COOKIE LTD

Executive Summary

Host Cookie Ltd is a newly incorporated micro-entity with negative net assets and current liabilities exceeding current assets, indicating significant solvency and liquidity risks. The company remains compliant with filing requirements and benefits from clear ownership but currently relies heavily on director support to continue operations. Further due diligence on financial backing and operational plans is essential before considering investment.

HOST COOKIE LTD - Analysis Report

Company Number: 14571566

Analysis Date: 2025-07-29 16:40 UTC

1. Risk Rating: HIGH
   Host Cookie Ltd exhibits high risk primarily due to its negative net assets and net current liabilities within its first financial year. The company shows an inability to meet short-term obligations based on the current balance sheet, indicating solvency and liquidity concerns.

2. Key Concerns:

• Negative Net Assets and Working Capital: Net assets stand at -£3,958 with net current liabilities of -£3,370, implying the company’s liabilities exceed its assets, posing solvency risk.
• Limited Financial History and Size: Being a micro-entity incorporated in 2023, with just one employee and minimal current assets (£64), there is insufficient operational history to assess sustainability or growth prospects.
• Reliance on Director Support: The going concern statement depends on continued support from the sole director, which may not be guaranteed, increasing operational risk.

3. Positive Indicators:

• No Overdue Filings or Penalties: Both accounts and confirmation statements are filed on time, reflecting compliance with regulatory requirements.
• Clear Ownership and Control: The sole director, Mr. James Patrick Cooke, owns 75-100% of shares and voting rights, ensuring clear decision-making authority and accountability.
• Industry Focus: The company operates in growing technology sectors (web portals, data hosting, IT consultancy, software development), which may offer future growth potential if financial stability improves.

4. Due Diligence Notes:

• Investigate the nature and terms of director support or funding arrangements that sustain the company’s operations.
• Review detailed cash flow projections and budgets to assess the timeline and feasibility of achieving profitability.
• Confirm whether there are any contingent liabilities or off-balance sheet obligations not reflected in the accounts.
• Monitor subsequent filings and operational updates for signs of improved financial health or additional capital injections.
• Evaluate the director’s background and relevant business experience, especially given the occupation as a painter, to understand management capability in the IT sector.