BWB TECHNOLOGY LTD

Executive Summary

BWB Technology Ltd is a micro-entity in the IT consultancy sector showing a notable decline in net current assets and equity over the latest year, which raises medium-level solvency and liquidity concerns. The company remains compliant with filings and maintains positive net assets, but the sharp decrease in financial buffers warrants further investigation into cash flow and operational sustainability. Overall, the company is currently solvent but requires monitoring for emerging financial risks.

BWB TECHNOLOGY LTD - Analysis Report

Company Number: 12531788

Analysis Date: 2025-07-29 18:03 UTC

1. Risk Rating: MEDIUM
   The company shows a marked decline in net current assets and net assets from £21,365 in 2024 to £2,183 in 2025, indicating potential weakening in financial strength. While still positive, the significant drop suggests emerging solvency and liquidity concerns. However, the company remains active, compliant with filings, and has no overdue accounts.

2. Key Concerns:

• Significant Decline in Net Current Assets: The net current assets dropped from £21,365 (2024) to £2,183 (2025), reducing the cushion to meet short-term liabilities and increasing liquidity risk.
• Minimal Equity Base: Share capital is nominal (£100), and shareholders' funds have decreased sharply, which may limit the company’s ability to absorb losses or secure financing.
• Director Loan and Related Party Balances: The director owes the company £1,207, while the company owes the director £54; related party balances, though small, warrant scrutiny to ensure proper governance and no misuse of funds.

3. Positive Indicators:

• Timely Filing and Compliance: No overdue returns or accounts, indicating good regulatory compliance and governance practices.
• Positive Net Assets: Despite the decline, net assets remain positive, suggesting the company is not insolvent at present.
• Stable Management: Single director with significant control, no evidence of disqualification or misconduct, providing continuity and clear accountability.

4. Due Diligence Notes:

• Investigate the causes of the significant reduction in current assets and net assets between 2024 and 2025, including any one-off expenses or operational downturns.
• Review cash flow statements and creditor aging to assess liquidity and working capital management in detail.
• Examine the nature and terms of director loans and related party transactions to ensure transparency and arm’s length treatment.
• Assess whether the company has sufficient ongoing revenue streams and client contracts to support sustainable operations given the small size and micro-entity status.