1TWOAPPS LIMITED

Executive Summary

1TWOAPPS LIMITED shows a marked deterioration in financial health, with negative net assets and a working capital deficit indicating solvency and liquidity risks. Despite compliance with filing requirements and concentrated ownership, the company’s minimal resources and lack of disclosed revenue raise concerns about operational sustainability. Additional due diligence on cash flow and business viability is recommended before investment consideration.

1TWOAPPS LIMITED - Analysis Report

Company Number: 13884509

Analysis Date: 2025-07-29 20:08 UTC

1TWOAPPS LIMITED – Risk Analysis

1. Risk Rating: HIGH
   Given the company's persistent negative net assets, increasing current liabilities, and minimal current assets, there is a pronounced solvency risk. The company’s financial position deteriorated notably in the last financial year, suggesting challenges in meeting short-term obligations.

2. Key Concerns:

• Negative Net Assets and Shareholders’ Funds: The net assets declined from negative £102 in 2023 to negative £3,066 in 2024, indicating erosion of equity and potential insolvency risk.
• Working Capital Deficit: Current liabilities (£3,643) substantially exceed current assets (£577), resulting in negative net current assets of £-3,066. This signals liquidity issues and inability to cover short-term liabilities.
• Limited Operational Scale and Resources: As a micro-entity with only one employee and minimal fixed assets (£1 in prior year), the company may struggle to generate sufficient revenue or cash flow to sustain operations or meet obligations.

3. Positive Indicators:

• Timely Filing of Accounts and Confirmation Statements: No overdue filings or confirmations were noted, indicating compliance with statutory requirements.
• Clear Ownership and Control: One individual controls 75-100% of shares and voting rights, which may facilitate swift decision-making and capital injections if needed.
• Exemption from Audit: As a micro-entity, the company benefits from simplified reporting and lower compliance costs.

4. Due Diligence Notes:

• Investigate Cash Flow and Revenue Trends: The accounts do not disclose turnover or profit/loss figures. Understanding operational income and cash flow generation is critical to assess sustainability.
• Review Director’s Plans and Capital Support: Assess whether the sole director intends to inject funds or restructure liabilities to address the negative equity and liquidity position.
• Examine Creditors and Debts: Identify the nature and terms of current liabilities to evaluate urgency and potential for renegotiation or settlement.
• Assess Business Model Viability: Given the sector (software development) and minimal assets, evaluate whether the company has active contracts, clients, or prospects to generate future income.

Overall, the company exhibits significant financial strain as of the latest accounts with negative net assets and working capital deficits, raising solvency and liquidity concerns. However, statutory compliance and clear ownership provide some basis for potential remedial action. Further operational and financial detail is necessary to fully assess sustainability.