BLACK PEAR ARCHITECH SOLUTIONS LTD

Executive Summary

Black Pear Architech Solutions Ltd demonstrates adequate solvency with positive net assets and no overdue filings, reflecting sound compliance and governance. However, a notable decline in cash reserves and net asset value in the latest year signals potential liquidity concerns and operational pressures that require further investigation. Overall, the company shows low to medium risk, contingent on clarifying recent financial trends and business sustainability.

BLACK PEAR ARCHITECH SOLUTIONS LTD - Analysis Report

Company Number: 12596081

Analysis Date: 2025-07-29 15:54 UTC

1. Risk Rating: LOW to MEDIUM
   Justification: The company is active, solvent, and compliant with its filing deadlines. It holds positive net current assets and net assets, indicating the ability to meet short-term and long-term liabilities. However, there is a notable decline in cash and net assets from 2023 to 2024 which warrants monitoring.

2. Key Concerns:

• Significant decrease in cash and current assets in the 2024 financial year compared to 2023 (£41,664 vs £115,361 cash), which may indicate a liquidity tightening or increased cash outflows.
• Sharp reduction in net assets and shareholders’ funds from £101,852 (2023) to £44,088 (2024), implying potential erosion of retained earnings or accumulated losses affecting financial stability.
• Limited scale and scope: single employee and minimal fixed assets, which might constrain operational flexibility and scalability in a competitive IT consultancy sector.

3. Positive Indicators:

• Current liabilities have decreased substantially from £17,973 (2023) to £1,811 (2024), improving working capital and short-term solvency metrics.
• The company maintains a positive net current asset position (£42,869 in 2024), suggesting it can cover its immediate debts from liquid assets.
• No overdue filings or compliance issues; accounts and confirmation statements are filed timely, indicating good governance practices.
• The director’s statement confirms exemption from audit, consistent with the company’s small size, and acknowledgment of compliance responsibilities.

4. Due Diligence Notes:

• Investigate reasons for the significant drop in cash and net assets between 2023 and 2024, including any one-off expenditures, investments, or operational losses.
• Review turnover and profit and loss account details (not filed publicly) to clarify operational profitability, revenue trends, and cost structure.
• Confirm whether there are any contingent liabilities or off-balance sheet risks not reflected in the filleted accounts.
• Assess the sustainability of a single-person operation in IT consultancy and whether the business model supports growth or diversification.
• Verify if there are any related party transactions or director loans impacting financial health.