LAYERCODE LIMITED

Executive Summary

LayerCode Limited exhibits persistent negative net assets and working capital deficits, indicating weak financial resilience and limited ability to service debt. The company’s micro-entity scale and lack of employees suggest constrained operational capacity, resulting in a declining financial trajectory. Credit facilities are not recommended without significant improvement in capital structure or operational cash flow.

LAYERCODE LIMITED - Analysis Report

Company Number: 13121114

Analysis Date: 2025-07-20 11:32 UTC

1. Credit Opinion: DECLINE
   LayerCode Limited demonstrates a weak financial position with persistent negative net assets and net current liabilities. The company’s balance sheet shows a deficit exceeding £22,000, indicating that liabilities substantially outweigh current assets. Given its micro-entity status and no recorded employees, the company appears to have limited operational capacity and cash generation ability. Without improvements in profitability or capital injection, the company currently lacks the financial strength to service debt reliably.

2. Financial Strength:
   The balance sheet reveals persistent net current liabilities (£21,988 in 2024) and negative shareholders’ funds (£22,738). This indicates an ongoing capital deficiency. Fixed assets are not reported, and current assets (£10,254) are insufficient to cover current liabilities (£32,242). The company’s financial position has not improved materially from the prior year, reflecting limited asset base and potentially accumulated losses.

3. Cash Flow Assessment:
   Although detailed cash flow statements are unavailable, the negative working capital position points to liquidity constraints. The company’s inability to cover short-term liabilities with current assets suggests potential cash flow issues. No employees or operational scale imply limited revenue generation, raising concerns about the company’s ability to meet payment obligations without external financing or capital support.

4. Monitoring Points:

• Improvement in net current assets and overall net assets position.
• Evidence of revenue growth or capital injection to support operations.
• Timely filing of annual accounts and confirmation statements.
• Any changes in director or ownership indicating restructuring or new financial backing.