BOTAN INFORMATION TECHNOLOGY AND CONSULTANCY LTD

Executive Summary

BOTAN INFORMATION TECHNOLOGY AND CONSULTANCY LTD demonstrates current solvency with positive net current assets and no overdue filings, supporting a low to medium risk profile. However, declining net assets and reduced cash reserves introduce some liquidity and operational concerns requiring further review. Overall, the company appears compliant and aligned with its IT consultancy activities but warrants closer examination of financial trends and provisions for an informed investment decision.

BOTAN INFORMATION TECHNOLOGY AND CONSULTANCY LTD - Analysis Report

Company Number: 12927221

Analysis Date: 2025-07-29 15:23 UTC

1. Risk Rating: LOW to MEDIUM
   The company shows modest net assets and positive net current assets, indicating it can meet short-term obligations. However, declining net assets and low cash reserves relative to liabilities introduce some caution. The business is small and has a limited operating history but currently appears solvent.

2. Key Concerns:

• Declining Net Assets: Net assets decreased from £895 (2023) to £533 (2024), suggesting erosion of equity possibly due to operating losses or provisions.
• Low Cash Balance: Cash at bank dropped from £3,598 to £2,351 while current liabilities remained stable at £1,199, reducing liquidity buffer.
• Provisions and Long-term Creditors: Provisions (£619) and previously outstanding long-term bank loans (£436 in 2023 but none in 2024) may indicate contingent liabilities or financial restructuring that need clarification.

3. Positive Indicators:

• Positive Net Current Assets: At £1,152 in 2024, current assets exceed current liabilities, supporting short-term financial stability.
• Compliance Status: No overdue filings for accounts or confirmation statements, indicating good regulatory compliance and governance discipline.
• Single Director with Relevant Expertise: The sole director's occupation as IT consultant aligns with the company’s IT consultancy SIC classification, suggesting operational alignment.

4. Due Diligence Notes:

• Investigate causes behind the decline in net assets and cash reserves—review profit and loss details and any extraordinary expenses or losses.
• Clarify the nature and timing of provisions recorded (£619), including any contingent liabilities that could impact future solvency.
• Confirm no current bank loans or other debt obligations beyond reported current liabilities and assess any off-balance sheet risks.
• Review operational performance and client base stability, given the company’s small size and sole employee/director structure, to assess sustainability.