ACE GAMES TECHNOLOGY LIMITED

Executive Summary

ACE GAMES TECHNOLOGY LIMITED is currently facing high financial risk due to substantial negative net assets and increasing long-term liabilities. Despite sufficient short-term liquidity and regulatory compliance, the company's solvency and operational sustainability are concerning. Further investigation into its debt structure and business performance is essential before considering investment.

ACE GAMES TECHNOLOGY LIMITED - Analysis Report

Company Number: 14780827

Analysis Date: 2025-07-29 19:12 UTC

1. Risk Rating: HIGH
   The company exhibits a significant negative net asset position that has worsened substantially within one year, alongside a large long-term creditor balance. This indicates potential solvency issues and financial distress risk.

2. Key Concerns:

• Negative Net Assets: The net liabilities increased from approximately £43,549 in 2023 to around £261,000 in 2024, reflecting an erosion of equity and accumulated losses.
• Substantial Long-Term Liabilities: Creditors due after one year nearly doubled from £150,000 to £350,000, suggesting increased debt burden that may not be easily serviced.
• Working Capital Mismatch: While current assets are modest (£89k), current liabilities are minimal (£280), but the mismatch with large long-term creditors raises concerns about the company’s ability to meet obligations when they fall due.

3. Positive Indicators:

• Cash Position: The company holds a reasonable cash balance (£82k) relative to current liabilities, indicating short-term liquidity is currently manageable.
• No Filing or Compliance Issues: Accounts and confirmation statements are filed on time with no overdue filings noted, reflecting compliance with regulatory requirements.
• Active Status & Industry: The company is active and engaged in software development and publishing of computer games, sectors with growth potential.

4. Due Diligence Notes:

• Investigate the nature and terms of the long-term creditors (£350k), including repayment schedule, interest obligations, and any covenants.
• Review detailed profit and loss data (not filed publicly) to understand the drivers of losses and assess operational sustainability.
• Clarify the relationship and transactions with significant controllers, especially related party loans or funding (noted PSCs in London and Turkey).
• Verify management plans for addressing the growing negative equity and any capital raising or restructuring initiatives underway.
• Confirm the accuracy and completeness of debtor balances and cash flow projections given the limited employee count and scale.