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.