BROAD TECHNOLOGY LTD

Executive Summary

Broad Technology Ltd demonstrates a strong liquidity position and clean compliance record in its first year of operation, supporting a low solvency risk. However, limited operating history and concentrated ownership warrant further due diligence to confirm operational stability and ongoing regulatory compliance. Overall, the company appears financially stable but early-stage.

BROAD TECHNOLOGY LTD - Analysis Report

Company Number: 14356675

Analysis Date: 2025-07-29 15:03 UTC

1. Risk Rating: LOW
   Justification: Broad Technology Ltd is a newly incorporated private limited company (since September 2022) operating in the "Other engineering activities" sector. The latest financials for the first accounting period ending September 2023 show a positive net current asset position (£70,571) supported by a strong cash balance (£105,205). There are no overdue filings or indications of regulatory non-compliance. The company has modest current liabilities (£51,648), mainly taxation and social security, but sufficient current assets to cover these. The directors have not drawn significant loans apart from a minor director advance which was repaid shortly after year-end.

2. Key Concerns:

• Limited financial history: Only one full financial period filed; absence of profit and loss data limits assessment of operational profitability and cash flow dynamics.
• Concentration of control: Two directors and one corporate shareholder control 25-50% each, indicating concentrated ownership which can increase governance risk if disputes arise.
• Taxation and social security liabilities: These represent the largest component of current liabilities (£40,575), so attention should be paid to ongoing compliance and timely settlement to avoid penalties.

3. Positive Indicators:

• Strong liquidity position: Cash of £105,205 exceeds total current liabilities (£51,648), indicating the company can meet short-term obligations comfortably.
• Compliance: No overdue accounts or confirmation statements; accounts prepared under small company regime without audit exemption issues.
• Low gearing and positive net assets: Shareholders’ funds are £70,571 with no significant fixed assets or long-term debt, suggesting low financial risk at this early stage.

4. Due Diligence Notes:

• Obtain profit and loss or management accounts to verify business sustainability and profitability since inception.
• Clarify nature and timing of taxation and social security liabilities to confirm no arrears or disputes exist.
• Review contracts and customer base to assess operational stability and revenue visibility given the company’s very recent formation.
• Investigate any off-balance sheet liabilities or contingent risks not disclosed in the accounts.
• Verify directors’ and shareholders’ backgrounds for potential governance or reputational risks.