Company Number: 13107185

Analysis Date: 2025-07-20 18:24 UTC

1. Risk Rating: MEDIUM
   The company shows moderate solvency with positive net assets and increasing shareholders’ funds, but there are concerns around relatively high long-term creditors compared to net assets. The liquidity position is adequate though cash has declined year-on-year, and the company remains dependent on related party control.

2. Key Concerns:

• Significant long-term liabilities (creditors due after one year) of £365k relative to net assets of £186k, indicating leverage risk.
• Decline in cash reserves from £127k to £77k in the latest year, which could pressure short-term liquidity.
• Recent turnover and profit figures are not disclosed (filleted accounts), limiting visibility into operational performance and sustainability.

3. Positive Indicators:

• Net current assets improved substantially to £148k, indicating working capital strength.
• Shareholders’ funds have increased from £109k to £186k, suggesting capital injections or retained earnings growth.
• Intangible assets (development costs) are significant and growing, implying ongoing investment in business development and potentially valuable IP.
• Compliance with filing deadlines and no overdue accounts or confirmation statements.

4. Due Diligence Notes:

• Obtain full profit and loss accounts or management accounts to assess revenue, profitability, and cash flow trends.
• Review terms and nature of the long-term creditors to understand repayment obligations and associated risks.
• Clarify related party relationships and financial support, especially given the large shareholder TM Group (UK) Ltd controlling 75-100%.
• Investigate the reason for director turnover in 2024 and any impact on governance or strategy.
• Verify the company’s business model sustainability given the software development focus and current asset structure.