ALGO EQUITIES TECHNOLOGY LTD

Executive Summary

Algo Equities Technology Ltd is an early-stage micro private limited company with negative net assets and working capital deficits in its first financial year. While regulatory filings are up to date, the financial position and lack of operational activity indicate a high risk from a solvency and liquidity perspective. Further due diligence is recommended to clarify the nature of liabilities and the company’s business viability going forward.

ALGO EQUITIES TECHNOLOGY LTD - Analysis Report

Company Number: 15005927

Analysis Date: 2025-07-29 20:21 UTC

1. Risk Rating: HIGH
   The company's financials show net liabilities and negative shareholders' funds within its first year of operation, indicating an immediate solvency risk. The absence of employees and minimal current assets against liabilities exacerbate liquidity concerns.

2. Key Concerns:

• Negative Net Assets: Net liabilities of £2,690 reflect that current liabilities exceed current assets, posing a solvency risk.
• Liquidity Shortfall: Current liabilities of £30,000 against current assets of only £19,706 and prepayments, resulting in negative working capital.
• Operational Viability: No employees and no reported profit and loss details suggest limited or no ongoing trading activity, raising questions about business sustainability.

3. Positive Indicators:

• Compliance with Filings: Accounts and confirmation statement are filed on time with no overdue notices, reflecting regulatory discipline.
• Single Controlling Shareholder/Director: Concentrated control by one individual may allow for swift decision-making and capital injections if necessary.
• Micro-entity Status: Benefits from simplified reporting and exemption from audit reduce administrative burdens and costs.

4. Due Diligence Notes:

• Investigate the nature and timing of the £30,000 current liabilities to understand if these are trade payables, loans, or other debts.
• Clarify the company’s business activities since incorporation, particularly revenue generation or contracts, given no employees and minimal assets.
• Assess the director’s plans for addressing negative net assets and whether additional funding or restructuring is anticipated.
• Review the company’s cash flow projections and any related party transactions, considering the director is also the major shareholder.
• Confirm the accuracy and completeness of the financial information as only filleted accounts have been filed without a profit and loss statement.