INTRABRAY PAYROLL & ACCOUNTANCY SERVICES LIMITED

Executive Summary

INTRABRAY PAYROLL & ACCOUNTANCY SERVICES LIMITED shows significant financial distress with consistent negative equity and net current liabilities funded primarily through director loans. While the company remains compliant with filing requirements and maintains a clear ownership structure, its ongoing liquidity challenges and lack of profitability raise substantial solvency concerns. Further detailed financial and operational due diligence is essential to evaluate the company’s viability.

INTRABRAY PAYROLL & ACCOUNTANCY SERVICES LIMITED - Analysis Report

Company Number: 12590089

Analysis Date: 2025-07-29 15:42 UTC

1. Risk Rating: HIGH

   The company exhibits significant solvency and liquidity concerns, with persistent negative net assets and net current liabilities over multiple years. The continual reliance on director loans and negative working capital signals ongoing financial distress.

2. Key Concerns:

   • Persistent Negative Equity: The company’s net assets have been negative since inception (from £148 positive in 2020 to -£2,037 in 2024), indicating accumulated losses and eroded shareholder funds.
   • Negative Net Current Assets: The company has consistently reported net current liabilities (~£2,000+), meaning short-term obligations exceed short-term assets, highlighting liquidity risk.
   • Reliance on Director Loans: The entire current liabilities appear to be loans from directors (£2,577 in 2024), which could suggest informal financing instead of sustainable external funding or operational cash flow.

3. Positive Indicators:

   • Current Active Status and Compliance: The company is active, not in liquidation or administration, and has filed accounts and confirmation statements on time, indicating regulatory compliance.
   • Clear Control Structure: Ownership and voting rights are clearly allocated, with major control held by Mr. Deepesh Lalji Laxman, potentially facilitating decision-making.
   • Industry Focus: Operating in tax consultancy and accounting (SIC codes 69203, 69202, 69201) suggests a professional service with potential for recurring revenue, though evidence of profitability is lacking.

4. Due Diligence Notes:

   • Investigate the nature and terms of the director loans—are these repayable on demand, interest-bearing, or formalized?
   • Review management accounts or cash flow statements for evidence of operational cash generation or further reliance on external financing.
   • Understand the business model and client base to assess sustainability and plans to return to profitability.
   • Clarify the circumstances behind the negative debtor balance (£-720 in 2024), which is unusual and may indicate accounting irregularities or errors.
   • Confirm no related party transactions or director remuneration issues impacting financial health.
   • Evaluate the reason for the recent name change and whether it reflects a strategic shift or restructuring.

Executive Summary: