AB SOFTWARE DEVELOPMENT LIMITED

Executive Summary

AB SOFTWARE DEVELOPMENT LIMITED exhibits significant financial distress as evidenced by its negative net assets and worsening liquidity position as of June 2024. While regulatory compliance and stable management are positives, the company’s solvency and short-term liquidity risks are elevated, warranting further detailed financial review before any investment decision.

AB SOFTWARE DEVELOPMENT LIMITED - Analysis Report

Company Number: 12674468

Analysis Date: 2025-07-20 16:18 UTC

1. Risk Rating: HIGH
   The company shows a significant deterioration in net assets, moving from positive £6,121 at 31 March 2023 to negative £16,067 at 30 June 2024, indicating insolvency on a balance sheet basis. Current liabilities have increased markedly, and net current liabilities have worsened substantially, signaling liquidity stress.

2. Key Concerns:

• Negative Net Assets: The company’s net liabilities position at the latest year-end suggests it may be insolvent. This is a fundamental solvency red flag.
• Liquidity Strain: Current liabilities (£39,650) greatly exceed current assets (£342), indicating inability to meet short-term obligations from liquid resources.
• Declining Fixed Assets: Fixed assets have declined from £38,313 to £23,241, possibly due to disposals or write-downs, which may reflect operational challenges or attempts to generate cash.

3. Positive Indicators:

• No Overdue Filings: Both accounts and confirmation statements are filed on time, demonstrating regulatory compliance and good governance practices.
• Stable Employment: The company maintains a consistent headcount (2 employees), which may indicate operational continuity.
• Experienced Directors: The directors have been in place since incorporation and are resident in the UK, which supports stability in management.

4. Due Diligence Notes:

• Investigate the reasons behind the sharp decline in net assets and increase in liabilities between March 2023 and June 2024.
• Request cash flow statements and profit & loss accounts to assess operational cash generation and profitability trends.
• Review any contingent liabilities, related party transactions, or recent creditor disputes that could impact financial health.
• Confirm whether any restructuring or refinancing efforts are underway or planned given the current negative equity position.