AGATHIAN LTD

Executive Summary

Agathian Ltd is an early-stage private limited company displaying high liquidity and solvency risks due to minimal capitalization and current liabilities closely matching current assets. While regulatory compliance is up to date and the IT consultancy sector offers growth potential, the lack of operational data and thin financial base warrant careful scrutiny. Prospective investors should conduct thorough due diligence on cash flows, liabilities, and funding plans to evaluate the company’s sustainability.

AGATHIAN LTD - Analysis Report

Company Number: 15513466

Analysis Date: 2025-07-29 20:54 UTC

1. Risk Rating: HIGH

Justification: Agathian Ltd is a newly incorporated private limited company with minimal equity (£2 share capital, £1 shareholders’ funds) and a balance sheet showing current liabilities (£24,585) almost equal to current assets (£24,587), resulting in negligible net current assets (£2). The company has only one employee (a director) and no turnover information is provided, indicating limited operational scale. The presence of a substantial taxation and social security creditor relative to assets signals potential liquidity stress. Overall, the financial data and company age suggest elevated solvency and liquidity risks.

2. Key Concerns:

• Liquidity Risk: Current liabilities (largely taxation and social security) nearly match current assets; working capital is effectively zero, raising concerns about the company’s ability to meet short-term obligations.
• Minimal Capitalization: The issued share capital and net assets are nominal (£2), indicating a very thin capital base that may not support business growth or absorb losses.
• Lack of Operational Data: No turnover or profit figures reported, and only one employee (a director), limiting evidence of sustainable business activity or revenue generation.

3. Positive Indicators:

• Compliance: Accounts and confirmation statement filings are up to date with no overdue filings, reflecting good regulatory compliance.
• Clear Control: The company’s ownership and control structure is transparent, with a single person of significant control holding 25-50% shares and director powers.
• Industry Classification: Engaged in IT consultancy (SIC 62020), a sector with potential for scalable and low capital-intensive operations.

4. Due Diligence Notes:

• Verify revenue generation and contract pipeline to assess operational viability and cash flow prospects.
• Investigate the nature and timing of the substantial taxation and social security creditor to understand if this is a timing issue or indicative of financial distress.
• Review director plans for capital injection or funding arrangements to bolster working capital.
• Confirm absence of contingent liabilities or off-balance sheet obligations.
• Assess the business model and client base given the very early stage of the company.