CUKOO LTD

Credit Opinion: CONDITIONAL

CUKOO LTD is an active micro-entity with positive net assets and up-to-date statutory filings, which supports a basic level of creditworthiness. However, the balance sheet is heavily weighted toward illiquid fixed assets, current assets are minimal, and working capital is negative. Filed micro-entity accounts do not disclose turnover, profit, or cash flow, so repayment capacity cannot be verified from public documents alone. Any facility should be conditional on security over the fixed assets, a debenture, personal guarantees from the directors/PSCs, and receipt of recent management accounts including a profit and loss account and cash flow forecast before drawdown.

Financial Strength

• Net assets were £108,033 at 28 February 2026, up from £94,942 in the prior year and £79,548 in 2021. Equity is positive but entirely retained reserves; called-up share capital is only £10.
• Total assets of £429,942 are dominated by fixed assets of £426,406 (approximately 99% of the balance sheet). Given the company’s real-estate letting SIC code, these are likely property interests and are relatively illiquid.
• Liabilities comprise £64,751 due within one year and £257,158 due after more than one year. Long-term creditors have declined modestly from £267,554 in 2025, but remain more than double the company’s net assets, indicating significant reliance on long-term financing.
• Total assets have contracted from a peak of £523,893 in 2022 to £429,942 in 2026, while net assets have fluctuated between £79,548 and £132,195 over the same period. The company remains solvent, but the asset base has shrunk materially.

Cash Flow Assessment

• Liquidity is weak. Current assets are only £3,536 against current liabilities of £64,751, a current ratio of roughly 0.05. Net current liabilities are £61,215, meaning the company does not hold liquid assets sufficient to cover obligations falling due within a year.
• No cash flow statement or profit and loss account is filed because the company reports under micro-entity provisions. Without turnover, operating profit, or cash flow data, debt-service coverage cannot be assessed from the public record.
• The company has only two employees, suggesting a modest fixed cost base, but there is no evidence of cash generation to meet trade creditors or any new borrowing.
• Statutory filings (accounts and confirmation statement) are currently up to date, which indicates basic administrative compliance but not financial performance.

Monitoring Points

• Working capital: Track whether current assets can be built up to cover the £64,751 of creditors due within one year.
• Creditor composition: Monitor the aging and terms of short-term creditors and the repayment schedule for the £257,158 of long-term creditors.
• Fixed asset valuation: Review the nature, occupancy, and market value of the £426,406 fixed asset base, as this is the primary source of balance-sheet value and potential security.
• Profitability and cash flow: Obtain quarterly or monthly management accounts showing revenue, operating profit, and cash movements before and during any facility.
• Filing conduct: Continue to monitor accounts and confirmation statement filing timeliness; any overdue filings would be a negative signal.
• Ownership and control: Note any changes to the PSC register or director appointments that could alter the risk profile.