Company Number: 13114617

Analysis Date: 2025-07-20 11:23 UTC

1. Risk Rating: HIGH
   Konnect Technical Limited exhibits significant solvency and liquidity concerns evidenced by persistent negative net current assets, negative shareholders’ funds, and increasing net liabilities over recent years despite a micro company classification.

2. Key Concerns:

• Negative Working Capital & Shareholders’ Funds: The 2024 accounts show net current liabilities of £7,078 and shareholders’ funds of -£9,871, indicating the company’s liabilities exceed its assets, raising doubts about its ability to meet short-term obligations.
• Declining Asset Base: Fixed assets decreased from £5,857 in 2023 to £4,453 in 2024, and current assets plummeted significantly from £174,201 to £2,135, suggesting potential operational or financial distress and possible asset disposals or write-downs.
• Director Advances and Related Party Transactions: The company’s director made advances totaling £15,535 during the 2024 year with a small repayment, resulting in an outstanding balance of £2,130. This reliance on director funding may indicate cash flow difficulties and operational dependency.

3. Positive Indicators:

• Compliance with Filing Requirements: The company’s accounts and confirmation statements are filed on time with no overdue filings, reflecting good regulatory compliance and governance practices.
• Stable Ownership and Control: Mr Matthew Paul Lonsdale holds 75-100% of shares and voting rights and remains actively involved as the director, which can provide continuity in management and decision-making.
• Micro-entity Filing Status: The company qualifies as a micro entity, which limits its reporting requirements and may reduce administrative burdens and associated costs.

4. Due Diligence Notes:

• Investigate the nature and cause of the sharp decline in current assets from 2023 to 2024, specifically whether this relates to revenue loss, bad debts, or asset disposals.
• Review the company’s cash flow statements and bank statements (if available) to assess liquidity position and ability to meet immediate obligations.
• Examine the terms and conditions of director advances and any other related party transactions for potential conflicts of interest or financial risk.
• Assess future business plans and revenue generation capability in the electricity trade sector (SIC 35140), including contract pipeline and customer base stability.
• Confirm no outstanding or impending creditor actions given the negative net asset position and explore any contingent liabilities not reflected in the accounts.