1POINT5 TECHNOLOGIES LTD

Executive Summary

1POINT5 TECHNOLOGIES LTD shows signs of financial distress with persistent negative net assets and accumulated losses despite recent working capital improvements. Liquidity appears constrained given very low cash balances, and significant long-term creditors raise solvency concerns. While regulatory compliance is maintained and ownership is stable, close scrutiny of creditor terms and cash flow health is recommended before investment consideration.

1POINT5 TECHNOLOGIES LTD - Analysis Report

Company Number: 13170894

Analysis Date: 2025-07-19 12:56 UTC

1POINT5 TECHNOLOGIES LTD — Investment Risk Analysis

1. Risk Rating: HIGH

Justification: The company exhibits persistent net liabilities and negative shareholders' funds over multiple years, indicating ongoing financial distress. Although there was an improvement in net current assets in 2024, the overall net asset deficit and significant long-term creditors raise solvency concerns. The very low cash balance and reliance on debt credit facilities also suggest liquidity risk.

2. Key Concerns:

• Solvency Risk: The company has negative net assets of £3,333 at 2024 year-end, an improvement from prior years but still indicative of an insolvent balance sheet position. Long-term creditors amounting to £27,659 further exacerbate solvency risks.
• Liquidity Constraints: Cash on hand is only £22 as of 2024 year-end, despite current assets of £30,110 largely comprised of debtors (£30,088). The minimal cash and significant trade and other creditors due within one year (£14,887) could impair the company’s ability to meet short-term obligations.
• Negative Retained Earnings: The retained earnings remain negative at £5,233, reflecting accumulated losses, which may constrain the company’s operational flexibility and ability to raise equity capital.

3. Positive Indicators:

• Recent Improvement in Working Capital: The net current assets improved significantly from a negative £16,427 in 2023 to a positive £15,223 in 2024, suggesting better short-term financial management or collections.
• Active Status and Compliance: The company is active with no overdue filings, indicating compliance with regulatory requirements.
• Ownership and Management Stability: The director and majority shareholder is a technology professional with full control, which may facilitate swift decision-making.

4. Due Diligence Notes:

• Investigate the nature and terms of the long-term creditors (£27,659) to assess repayment schedules and impact on solvency.
• Review debtor aging and collectability to confirm the realizability of the £30,088 debtors balance.
• Examine cash flow statements and forecasts to assess operational cash generation and liquidity.
• Understand the business model and revenue streams to evaluate sustainability prospects given the accumulated losses.
• Assess any contingent liabilities or off-balance sheet commitments not disclosed in the accounts.