INBOUND FINTECH LTD
Company number 06020663 · Monitor this company
This analysis was written by an AI from the company's public filings. It may contain errors or omissions and is not financial or professional advice.
Risk Analysis: INBOUND FINTECH LTD (06020663)
1. Risk Rating: MEDIUM
Justification: While the company maintains a strong absolute financial position with £813k net assets and minimal liabilities of £48k, there is a concerning two-year trend of deteriorating performance. Net assets have declined by approximately 31% from their 2023 peak (£1.19M to £813k), and cash reserves have fallen by over £600k in the same period. The large "other debtors" balance and declining employee count add further uncertainty.
2. Key Concerns
a) Sustained Erosion of Shareholder Funds The profit and loss reserve has declined from £1,030,469 (2024) to £812,905 (2025), indicating a loss of approximately £217,000 for the year. Combined with the prior year decline, the company has seen cumulative losses eroding approximately £372k from retained earnings over two years. This trajectory, if continued, would materially impact the company's financial resilience.
b) Concentration in "Other Debtors" The 2025 accounts reveal £267,983 in "other debtors" (comprising £198,599 current and £69,384 non-current), which represents approximately 31% of total assets. This classification is opaque and warrants investigation — such balances could represent related-party loans, director advances, or other receivables that may not be readily realisable. The trade debtor balance of only £32,783 suggests the majority of receivables are not arising from normal trading activity.
c) Cash Depletion Rate Cash has fallen from £1,148,248 (2023) to £535,970 (2025), a reduction of over £612k in two years. While the remaining cash position provides a reasonable buffer, the burn rate raises questions about operational sustainability if revenue generation has contracted.
3. Positive Indicators
a) Robust Solvency Position Total liabilities of £48,282 against total assets of £861,287 yield a liabilities-to-assets ratio of just 5.6%. The company has no long-term debt and minimal creditor exposure, meaning insolvency risk in the near term is very low.
b) Healthy Cash Reserves Relative to Obligations Cash of £535,970 exceeds total liabilities by more than 11 times, providing substantial liquidity headroom. The company can meet all current obligations comfortably.
c) Long Operational History and Compliance Incorporated since 2006, the company has nearly 19 years of trading history. Filings are current, with accounts and confirmation statements neither overdue nor late. No disqualification records are noted against directors.
d) Low Trade Creditor Exposure Trade creditors of only £8,471 suggest the company is not stretching supplier payments and maintains a conservative approach to trade payables.
4. Due Diligence Notes
| Item | Detail to Investigate |
|---|---|
| Other Debtors Composition | Request breakdown of the £267,983 balance. Determine whether these are related-party transactions, director loans, or genuine third-party receivables. Assess recoverability and whether any provisions should be made. |
| Revenue and Profitability Trends | The P&L account has not been delivered to the Registrar (filleted accounts). Request full profit and loss statements for 2023-2025 to understand the magnitude and cause of trading losses. |
| Employee Reduction | Average employees declined from 8 to 6. Clarify whether this reflects cost-cutting measures, natural attrition, or business contraction. Assess impact on service delivery capacity. |
| Director Resignation | Francisco Sanchez Montesdeoca is recorded as resigning on 31 August 2026 — a future date. Confirm whether this is a scheduled departure, a data entry error, or an anticipated governance change. |
| Business Model Alignment | The SIC code (62011 - ready-made interactive leisure and entertainment software) appears misaligned with the website description of a "digital growth agency for Financial Services." Clarify whether the company has pivoted its business model and whether the SIC code remains appropriate. |
| Cash Flow Drivers | Investigate whether cash depletion is driven by operational losses, capital expenditure, or distributions to shareholders. The 2023 peak in cash and net assets may have included significant one-off items. |
| Related Party Transactions | With three PSCs each holding 25-50%, assess whether shareholder loans or dividends are contributing to balance sheet movements. |
| Historical Name Changes | The company traded as K ZERO LTD until 2010 and OMEC VENTURES LIMITED until 2018. Understand the rationale for rebranding and whether any liabilities or contingent obligations persist from prior incarnations. |