Company Number: 13102955

Analysis Date: 2025-07-20 13:13 UTC

1. Credit Opinion: DECLINE
   Kozy Limited shows persistent net liabilities and negative shareholders' funds over the last five years, with net assets worsening from -£3,116 in 2020 to -£2,440 in 2024. The company operates with negative working capital each year, indicating a sustained liquidity deficiency. Absence of profit and no indication of cash inflows sufficient to cover liabilities raise high credit risk. Given the micro-entity size and lack of positive financial trajectory, the company is not currently creditworthy for lending or significant credit facilities without substantial improvement or external support.

2. Financial Strength:
   The balance sheet reveals a weak financial position. Current liabilities consistently exceed current assets, producing net current liabilities ranging from -£2,686 to -£1,840. Net liabilities persist, and shareholders’ funds remain negative, evidencing ongoing losses and erosion of equity capital. Minimal share capital (£2) offers no buffer. The company’s asset base is solely current assets; no fixed assets are reported, limiting collateral value. The company appears reliant on credit from suppliers or other short-term funding to operate.

3. Cash Flow Assessment:
   Negative net current assets for five consecutive years suggest ongoing cash flow constraints. The working capital deficit implies the company may struggle to meet short-term obligations on time. The absence of employees and limited reported assets further indicate a lean operation possibly dependent on owner funding or delayed payments. No filed profit and loss data prevents direct cash flow analysis, but the balance sheet pattern implies insufficient liquidity and working capital management challenges.

4. Monitoring Points:

• Watch for improvements in net current assets turning positive to reduce liquidity risk.
• Monitor changes in shareholders’ funds for signs of capital injection or profitability.
• Track timely filing of accounts and confirmation statements to assess compliance and governance.
• Observe any changes in trade creditors and debt levels for signs of worsening payment behaviour.
• Evaluate any strategic moves or business model changes that could enhance cash flow or asset base.