Company Number: 13990950

Analysis Date: 2025-07-29 19:39 UTC

1. Risk Rating: MEDIUM

   Although Configurate Limited is currently active and compliant with filing deadlines, the financial data indicates some liquidity and solvency concerns given persistent net current liabilities and a significant reduction in net assets over the latest year.

2. Key Concerns:

   • Negative Net Current Assets: The company has net current liabilities of £19,139 as of 31 March 2024, worsening from £11,525 the prior year, which suggests short-term liquidity pressure and potential difficulties meeting immediate obligations.

   • Decline in Net Assets: Net assets dropped sharply from £10,158 in 2023 to £1,842 in 2024, indicating erosion of shareholder equity and potential solvency stress if the trend continues.

   • Limited Scale and Resources: As a micro-entity with only 2 employees and modest fixed assets (£22k), the company’s operational scale is small, which could restrict its ability to absorb financial shocks or invest for growth.

3. Positive Indicators:

   • Timely Regulatory Compliance: The company is up to date with both accounts and confirmation statement filings, reflecting sound governance in terms of statutory obligations.

   • Stable Ownership and Management: Directors and persons of significant control (Christine and Mark Kingsnorth) have been consistent since incorporation, suggesting stable leadership and control.

   • Active Business Presence: The company operates in a specialized niche (software publishing, SIC 58290) with an active website and contact details, indicating ongoing commercial activity.

4. Due Diligence Notes:

   • Cash Flow and Working Capital Analysis: Verify detailed cash flow statements to assess the company’s ability to manage short-term liabilities and whether negative net current assets are due to timing issues or structural cash flow deficits.

   • Profitability Trends and Revenue Streams: Examine profit and loss accounts and revenue growth to understand the causes behind the decline in net assets and whether losses are operational or one-off.

   • Director and Shareholder Backgrounds: Conduct background checks on directors for any adverse records and confirm the nature of their control and commitment to the business.

   • Future Financing Plans: Investigate if there are plans for capital injection or debt restructuring to improve the liquidity position.

   • Audit Exemption Impact: Since the company is exempt from audit, review the reliability and completeness of financial information and consider requesting additional assurance if needed.