ARGUS TECH LTD.

Executive Summary

ARGUS TECH LTD. shows a deteriorating financial position with significant negative net assets and a steep rise in current liabilities, indicating poor liquidity and high credit risk. The company’s ability to meet debt obligations is severely constrained, leading to a recommendation to decline credit at this stage. Close monitoring of future financial updates and liquidity improvements would be necessary before reconsidering credit facilities.

ARGUS TECH LTD. - Analysis Report

Company Number: 13737994

Analysis Date: 2025-07-19 11:55 UTC

1. Credit Opinion: DECLINE
   ARGUS TECH LTD. presents significant financial distress indicated by large and worsening net liabilities and negative working capital. The net current liabilities increased from approximately £339k in 2022 to £1.48m in 2023, reflecting a severe liquidity crunch. The company’s net assets declined drastically from -£334k to -£1.48m within a year, signaling deteriorating financial health. Without clear evidence of imminent capital injections or improved cash flows, the company’s ability to service any new debt or meet short-term obligations is highly questionable. The lack of an audit and reliance on micro-entity reporting standards limit the transparency and reliability of financial data. The director’s background and control structure suggest concentrated ownership but do not mitigate the financial risks.

2. Financial Strength:
   The company’s balance sheet is weak with fixed assets of only £4,204 and current assets declining from £94,204 in 2022 to £66,483 in 2023, while current liabilities ballooned from £438,923 to £1,551,936. This created a severe working capital deficit of nearly £1.5 million as of the latest accounts. Negative shareholders' funds of £1.48m indicate accumulated losses and no buffer to absorb further shocks. The company’s micro-entity size classification and small asset base limit its collateral value for secured lending.

3. Cash Flow Assessment:
   The significant increase in current liabilities relative to current assets indicates cash flow pressure and potential difficulty in meeting short-term commitments. The company has no apparent liquid reserves and a negative net current asset position that could lead to insolvency risks if liabilities are demanded. The increase in average employees from 5 to 10 suggests growing operational expenses, exacerbating liquidity strain without corresponding asset growth or evident revenue strength.

4. Monitoring Points:

• Monitor subsequent filings for any capital injections or debt restructuring that improve liquidity.
• Track changes in current liabilities and receivables to detect improvements or worsening of working capital.
• Watch for director changes or external financing that could impact governance and financial strategy.
• Review cash flow statements (if available) and bank statements for actual liquidity trends.
• Monitor compliance with filing deadlines and any notes on contingent liabilities or related party transactions.