ABW INFORMATION TECH LTD

Executive Summary

ABW Information Tech Ltd displays high financial risk characterized by escalating net liabilities and negative cash balances, raising solvency and liquidity concerns. While regulatory filings are current and governance appears stable, the absence of trading activity and worsening financial position warrant further investigation into operational viability and underlying financial arrangements.

ABW INFORMATION TECH LTD - Analysis Report

Company Number: 12833814

Analysis Date: 2025-07-20 11:52 UTC

1. Risk Rating: HIGH
   The company exhibits significant solvency and liquidity concerns, demonstrated by persistent negative net assets and net current assets over recent years, indicating an inability to meet short-term liabilities and an eroding equity base.

2. Key Concerns:

• Negative Net Assets and Net Current Assets: The company’s net liabilities have worsened from -£4,342 in 2023 to -£10,249 in 2024, with cash balances consistently negative, signaling ongoing financial distress.
• Absence of Current Liabilities in Latest Year: The 2024 accounts show zero current liabilities, which is unusual given negative cash and net current assets; this raises questions about the completeness or timing of creditor recognition.
• No Employees and Limited Operating Activity: Zero employees reported for the year and no revenue or profit information provided suggest minimal or no trading activity, questioning operational sustainability.

3. Positive Indicators:

• Up-to-Date Filings and Compliance: No overdue accounts or confirmation statements indicate good regulatory compliance and governance in terms of statutory filing requirements.
• Stable Directorship: A current director with no reported resignations or disqualifications, suggesting continuity in management.
• Exemption from Audit: The small company exemption reduces administrative burden, though it limits detailed financial scrutiny.

4. Due Diligence Notes:

• Investigate the nature of the negative cash balances and absence of creditors in the latest accounts to clarify the company’s short-term obligations and cash flow management.
• Review business activity and revenue streams since no turnover or profit/loss data is provided; assess sustainability and plans for returning to profitability.
• Examine director and shareholder funding or loans not reflected as liabilities, which may be masking financial risks.
• Confirm the completeness and accuracy of filings with Companies House and whether any contingent liabilities exist.
• Assess potential related-party transactions given the controlling shareholder has rights to appoint/remove directors.