Company Number: NI670855

Analysis Date: 2025-07-29 20:09 UTC

1. Risk Rating: HIGH
   The company exhibits significant solvency risk evidenced by persistent net liabilities exceeding £124k and current liabilities vastly outweighing current assets. The financial position has deteriorated steadily since incorporation, raising concerns about the company’s ability to meet short-term obligations.

2. Key Concerns:

• Negative Working Capital: The company’s current liabilities (£146,975) substantially exceed current assets (£22,362), indicating potential liquidity problems and cash flow stress.
• Consistent Net Liabilities: Shareholders’ funds remain deeply negative (-£124,615), worsening annually, suggesting accumulated losses and erosion of equity.
• Dependence on Intragroup Debt: A large portion (£142,475) of current liabilities is owed to group undertakings, implying reliance on related party financing which may not be sustainable or on market terms.

3. Positive Indicators:

• Cash Balance Growth: Cash at bank increased from £12,771 in 2023 to £20,111 in 2024, showing some improvement in liquid resources.
• No Overdue Filings: Accounts and confirmation statements are filed on time, indicating compliance with regulatory obligations.
• Small, Focused Workforce: With only 2 employees and a clear SIC code (software development), operational complexity is limited, potentially facilitating management focus and cost control.

4. Due Diligence Notes:

• Investigate the nature and terms of amounts owed to group undertakings to assess the risk of repayment and whether these are formal loans or informal balances.
• Review cash flow statements and forecasts to evaluate liquidity management and ability to sustain operations or repay creditors.
• Assess any contingent liabilities or off-balance sheet items not visible in the accounts that could impact solvency.
• Confirm the business model viability given persistent losses and explore management’s plans for return to profitability or restructuring.
• Verify director and shareholder backgrounds, especially given multiple directors from the same address, for governance and control transparency.