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.