GAGAN TECH LTD

Executive Summary

Gagan Tech Ltd is a small, micro-entity operating in IT consultancy with stable liquidity and compliance records. The main concern is the declining net asset base over recent years, which warrants further review of profitability and operational performance. Overall, current data supports a low risk rating but limited financial disclosure restricts a comprehensive assessment.

GAGAN TECH LTD - Analysis Report

Company Number: 12537443

Analysis Date: 2025-07-20 18:36 UTC

1. Risk Rating: LOW
   The company demonstrates solid net asset positions over recent years, positive net current assets, and no overdue filings. It operates as a micro-entity with limited complexity, indicating low immediate financial risk.

2. Key Concerns:

• Declining Net Assets: The net assets have decreased from £39,924 in 2020 to £18,734 in 2024, indicating a reduction in financial buffer.
• Limited Scale and Single Employee: Operating with only one employee and small asset base may constrain operational scalability and resilience.
• No Profit & Loss Details Filed: Absence of P&L data limits insight into profitability trends and cash flow generation.

3. Positive Indicators:

• Consistently Positive Net Current Assets: Current assets exceed current liabilities each year, suggesting adequate short-term liquidity.
• Timely Filing Compliance: No overdue accounts or confirmation statements, indicating good regulatory compliance and governance.
• Stable Director and Ownership: Single director and consistent registered address simplify oversight and control.

4. Due Diligence Notes:

• Investigate reasons behind the steady decline in net assets over the last four years to assess if losses are operational or investment-related.
• Obtain profitability and cash flow data to evaluate operational sustainability and ability to generate positive earnings.
• Confirm that the micro-entity accounting approach is appropriate given the company’s activity and whether any contingent liabilities exist.