I4TECH INNOVATIONS LIMITED

Executive Summary

I4TECH INNOVATIONS LIMITED is a micro-entity showing early-stage growth with improving net assets and fixed asset investments. However, reliance on long-term creditors and limited financial disclosure introduce medium risk regarding liquidity and operational sustainability. Continued monitoring and further financial detail are recommended to fully assess the company's stability.

I4TECH INNOVATIONS LIMITED - Analysis Report

Company Number: 14247768

Analysis Date: 2025-07-29 18:57 UTC

1. Risk Rating: MEDIUM
   The company shows some improvement in net assets and current asset management, but the presence of significant creditors due after more than one year and relatively low working capital could present solvency and liquidity risks typical for a young micro-entity.

2. Key Concerns:

• Long-term Creditors: The substantial amount (£41,017) of creditors falling due after more than one year on the 2024 balance sheet could indicate reliance on external financing or deferred liabilities which may pressure future cash flows.
• Working Capital: Although net current assets improved to £4,071 in 2024 from a negative position in 2023, the margin remains narrow for operational flexibility. This could pose challenges if unexpected expenses occur or receivables are delayed.
• Limited Financial Disclosure: As a micro-entity, the company filed unaudited accounts with limited narrative and no profit and loss details, restricting a comprehensive assessment of operational profitability and cash flow stability.

3. Positive Indicators:

• Increasing Net Assets and Fixed Assets: The net assets increased from £6,099 in 2023 to £24,373 in 2024, supported by growth in fixed assets from £8,050 to £61,319, suggesting investment into longer-term resources.
• Timely Filings: Both accounts and confirmation statements are up to date with no overdue filings, indicating strong compliance with regulatory requirements.
• Stable Workforce: The company maintains a small but consistent employee base of 2 persons, which is typical for its micro classification and may help contain overhead costs.

4. Due Diligence Notes:

• Investigate the nature and terms of the long-term creditors to understand repayment schedules and impact on cash flow.
• Seek additional management information or internal reports on profit and loss, cash flows, and business plans to evaluate operational sustainability.
• Clarify the reason for the significant increase in fixed assets and whether these are income-generating or strategic investments.
• Review director backgrounds and any related party transactions that might affect financial stability or governance.