N TEC SOLUTIONS LIMITED

Risk Rating: LOW The company demonstrates strong solvency and robust liquidity, with cash reserves significantly exceeding current liabilities. The business is well-established and compliant with filing requirements, though the financial history reveals notable balance sheet volatility that warrants monitoring.

Key Concerns: * Balance Sheet Volatility: The financial history shows significant year-over-year fluctuations in total assets, cash, and creditor positions. For example, cash dropped from £321k in 2019 to £63k in 2018, spiked to £588k in 2022, fell to £83k in 2024, and rose again to £580k in 2025. This volatility may indicate project-based, cyclical, or irregular revenue streams, making future financial positioning less predictable. * Elevated Taxation Liability: The "Taxation and social security" creditor balance increased dramatically from £20,190 in 2024 to £169,121 in 2025. While this likely reflects a profitable period resulting in higher Corporation Tax provisions, it represents a significant near-term cash outflow and requires verification to ensure it is not indicative of a dispute or arrears. * Key-Person Dependency and Concentrated Control: Mrs. Agnieszka Williams holds over 75% of the shares and voting rights and has the right to appoint and remove directors. With the average employee count recently dropping from 6 to 4, the company is heavily reliant on its controlling director for continuity and operational execution.

Positive Indicators: * Excellent Liquidity: The company holds £580,733 in cash against total current liabilities of £177,673. This provides a substantial working capital buffer and ensures the company can comfortably meet its short-term obligations without reliance on external financing. * Strong Solvency Position: Net assets/shareholders' funds stand at £602,683 as of March 2025, a significant improvement from £240,371 in 2024. The balance sheet shows no long-term debt, indicating a structurally sound business free from leveraged repayment pressures. * Regulatory Compliance and Longevity: Incorporated in 2000, the company has operated for over two decades. Accounts and confirmation statements are filed and up to date, with no overdue markers, demonstrating consistent administrative compliance.

Due Diligence Notes: * Nature of Cash and Debtor Increases: Investigate the underlying commercial reasons for the near-sevenfold increase in cash (£83k to £580k) and the near-doubling of trade debtors (£94k to £180k) between 2024 and 2025. Determine if this reflects organic trading growth, the timing of specific large contracts, or the disposal of assets not reflected in the fixed asset register. * Composition of Tax Liabilities: Clarify the exact nature of the £169k taxation liability. Confirm whether this is primarily Corporation Tax payable from current-year profits, or if it includes VAT or PAYE arrears. * Operational Shifts: Assess the reasons behind the reduction in headcount (from 6 to 4 employees) and the elimination of stocks (down from £75k to £0). This may indicate a deliberate pivot in the business model from holding inventory to a purely service-based operation, which aligns with their SIC code (96090 - Other service activities n.e.c.). * Profitability Verification: As a small entity filing under the small companies regime, the company has not delivered its Income Statement. To assess actual trading performance and margins, request full management accounts or profit & loss statements from the directors.