BAJUTECH LIMITED

Executive Summary

BAJUTECH LIMITED exhibits signs of financial distress with a negative net asset position and outstanding long-term liabilities, raising solvency and liquidity risks. While the company remains compliant with filing requirements and operates in a potentially favorable sector, limited financial transparency and the deterioration in financial health warrant thorough due diligence before investment consideration.

BAJUTECH LIMITED - Analysis Report

Company Number: 14415830

Analysis Date: 2025-07-29 16:43 UTC

1. Risk Rating: HIGH
   The company shows a significant negative net asset position as of the latest financial year end, indicating solvency concerns. The presence of creditors due after more than one year combined with negative shareholders’ funds suggests financial distress.

2. Key Concerns:

• Negative Net Assets: The balance sheet shows net liabilities of £338 as of 31 October 2024, a sharp deterioration from positive net assets of £100 in 2023. This indicates the company’s liabilities exceed its assets.
• Long-Term Creditors: There is a creditor balance of £438 due after more than one year, which the company appears unable to cover with current assets, raising questions about its ability to meet longer-term obligations.
• Micro-Entity Status with Limited Disclosure: As a micro-entity, the company provides minimal financial detail, limiting transparency into cash flows, profitability, and operational performance.

3. Positive Indicators:

• Compliance with Filing Requirements: Both accounts and confirmation statements are filed on time, indicating regulatory compliance and governance awareness.
• Active Status and Single Director: The company is active with a single director who is also the sole shareholder, potentially allowing for agile decision-making.
• Industry Classification: Operating in IT consultancy (SIC 62020), a sector with growth potential, could bode well if financial and operational issues are addressed.

4. Due Diligence Notes:

• Investigate the nature and terms of the long-term creditor balance of £438 and assess whether this is repayable or convertible debt.
• Request detailed cash flow and profit and loss statements to assess operational viability and liquidity beyond balance sheet snapshots.
• Clarify the cause of the significant deterioration in net assets between 2023 and 2024, including any extraordinary expenses, write-downs, or accounting adjustments.
• Review director’s plans or external financing arrangements to address the negative equity position.
• Confirm whether there are any contingent liabilities or off-balance sheet commitments that may further impact solvency.