ARG INFO TECH LTD

Executive Summary

ARG INFO TECH LTD demonstrates solvency with positive net assets but exhibits liquidity risks due to a sharp decline in current assets and working capital. Operationally, the absence of employees and reduced scale warrant further inquiry into business sustainability. Regulatory compliance is maintained with timely filings and no governance issues noted.

ARG INFO TECH LTD - Analysis Report

Company Number: 14053929

Analysis Date: 2025-07-19 12:21 UTC

1. Risk Rating: MEDIUM

Justification: ARG INFO TECH LTD is an active micro-entity with recent financial filings that show positive net assets but a significant decline in current assets and net assets from the previous year. The company operates in IT consultancy and has a sole director and a clear ownership structure. However, the sharp decrease in working capital and absence of employees raise concerns about operational scale and liquidity.

2. Key Concerns:

• Declining liquidity position: Current assets dropped from £28,128 in 2023 to £5,115 in 2024, with net current assets falling from £11,436 to £2,401, indicating potential cash flow pressure.
• No employees reported for the latest financial year (0 employees vs. 1 previously), which may imply reduced operational capacity or reliance on external contractors.
• Small scale and micro-entity status limit transparency on profitability, turnover, and detailed financial performance, restricting comprehensive assessment of business sustainability.

3. Positive Indicators:

• Positive net assets (£2,401) and shareholders’ funds suggest the company is solvent and meets its obligations at the balance sheet date.
• Compliance with filing deadlines for both accounts and confirmation statements indicates sound regulatory adherence.
• Clear and stable ownership/control structure with no director disqualifications or governance flags.

4. Due Diligence Notes:

• Investigate reasons behind the significant decrease in current assets and net current assets between 2023 and 2024, including cash flow statements if available.
• Clarify business model changes or operational downsizing suggested by the zero employee count and reduced asset base.
• Review turnover and profitability figures not disclosed in micro-entity abridged accounts to assess revenue trends and operational viability.
• Confirm absence of any contingent liabilities or off-balance sheet risks that may impact solvency.
• Assess director and shareholder plans for capital injection or business development given the reduced working capital.