ADIO TECHNOLOGY LTD

Executive Summary

ADIO TECHNOLOGY LTD currently demonstrates a low risk profile based on its positive net assets, up-to-date compliance, and improved liquidity position. However, the absence of employees and minimal share capital suggest limited operational scale, which warrants further inquiry into business sustainability and cash flow sources. Overall, the company appears solvent and compliant but requires deeper understanding of its operational model and financial underpinning.

ADIO TECHNOLOGY LTD - Analysis Report

Company Number: 13103698

Analysis Date: 2025-07-20 11:51 UTC

1. Risk Rating: LOW
   The company shows positive net current assets and shareholders' funds in the latest year, indicating the ability to meet short-term obligations. There are no overdue filings or liquidation status. The micro-entity scale and absence of employees suggest a low operational complexity and limited financial risk.

2. Key Concerns:

• The company has no employees, which may indicate limited operational capacity or reliance on external contractors; this could impact business sustainability.
• The share capital is minimal (£1), which may limit financial flexibility and investor confidence.
• The company operates in a research and experimental development sector which can be inherently uncertain and capital-intensive, though specific financial data on profitability or cash flows is absent.

3. Positive Indicators:

• Significant increase in current assets from £19,752 (2023) to £253,265 (2024), improving liquidity position substantially.
• Consistently positive net current assets and net assets in the latest reported year.
• Up-to-date statutory filings with no overdue accounts or confirmation statements, reflecting good compliance and governance standards.
• The director has remained consistent since incorporation with no recorded disqualifications or compliance issues.

4. Due Diligence Notes:

• Clarify the nature and source of the substantial increase in current assets in the latest year to understand cash flow stability and working capital management.
• Investigate the company's business model and revenue streams given zero employees and micro-entity status to assess operational sustainability.
• Review contractual arrangements or dependencies on the sole director or external parties to evaluate operational risks.
• Confirm if there are any contingent liabilities or off-balance sheet obligations not captured in micro-entity accounts.
• Assess the company's research pipeline or intellectual property to gauge future prospects and asset quality.