Company Number: 13880209

Analysis Date: 2025-07-20 12:40 UTC

1. Risk Rating: LOW
   ABACUS EDUTECH LIMITED shows a positive net asset position and working capital as of its latest filed accounts. There are no indications of overdue filings or insolvency proceedings. The company is classified as micro-entity with relatively low financial complexity, and the directors have complied with filing deadlines.

2. Key Concerns:

• Limited financial history: Incorporated in 2022, with only two full years of accounts available, limiting trend analysis.
• Small scale operations: Only one employee reported and modest current assets, which may constrain growth and operational resilience.
• Negative net assets in initial year: The company started with a negative net asset position (£-360 in 2023), though this has since improved.

3. Positive Indicators:

• Significant improvement in net assets from negative £360 to positive £17,035 within one year, reflecting better financial health.
• Positive net current assets (£17,035) suggest the company can meet short-term liabilities comfortably.
• No overdue statutory filings or compliance issues noted, indicating sound governance and regulatory adherence.
• Directors have direct control and have signed off on accounts, showing active management involvement.

4. Due Diligence Notes:

• Investigate revenue streams and profitability trends beyond balance sheet data to assess sustainability.
• Confirm cash flow stability given the small asset base and single employee status.
• Review director backgrounds and related party transactions for potential conflicts of interest.
• Assess client base and contracts within the software development niche (SIC 62012) for operational risks.
• Verify any contingent liabilities or off-balance-sheet risks not disclosed in the accounts.