BINARY INTELLECT INVESTMENTS LTD

Executive Summary

Binary Intellect Investments Ltd demonstrates significant solvency risk due to sustained negative equity and long-term liabilities exceeding fixed assets. While regulatory compliance is current and asset base stable, the lack of operational activity and cash flow raises concerns about sustainability. Further investigation into asset valuations, debt obligations, and business operations is essential before considering investment.

BINARY INTELLECT INVESTMENTS LTD - Analysis Report

Company Number: 13554162

Analysis Date: 2025-07-20 14:51 UTC

1. Risk Rating: HIGH
   Binary Intellect Investments Ltd exhibits a high risk profile primarily due to persistent negative net assets and substantial long-term liabilities exceeding its fixed assets, indicating solvency concerns.

2. Key Concerns:

• Negative Shareholders' Funds: The company has maintained negative equity from inception (£-5,979 in 2021) to £-1,464 in 2024, reflecting accumulated losses or undercapitalization that may undermine solvency.
• High Long-Term Debt: Creditors falling due after more than one year total £181,063, which surpasses the fixed asset value of £165,397, suggesting that the company’s asset base may not fully cover its debt obligations.
• No Employees and Limited Operational Activity: The company reported zero employees in the current and prior years, which coupled with minimal current assets and cash balances, raises concerns about operational sustainability and cash flow generation capacity.

3. Positive Indicators:

• Timely Compliance: The company has filed its latest accounts and confirmation statement on time, indicating good regulatory compliance and governance discipline.
• Stable Fixed Asset Base: The tangible fixed asset value has remained consistent at £165,397 over the past years, potentially representing owned real estate assets relevant to the company's business activities.
• Clear Control and Management: There is a single director and controlling party with established influence, which may facilitate decisive management actions.

4. Due Diligence Notes:

• Nature and Valuation of Fixed Assets: Investigate the quality, market value, and liquidity of the fixed assets (land and property) to assess if these can realistically service the long-term debt.
• Debt Structure and Terms: Review the breakdown and terms of the £181,063 long-term liabilities, including bank loans and other creditors, to understand repayment schedules and covenants.
• Operational Model and Revenue Streams: Examine the company’s business model, turnover, and cash flow generation given the absence of employees and limited current assets.
• Director’s Loan Account: The accounts note a director’s loan account balance of £117 in 2024 versus nil previously; verify the nature and terms of this loan.
• Profit and Loss Details: The company has opted not to file a profit and loss account; request internal financial statements to obtain a clear picture of income, expenses, and profitability trends.