Company Number: 12921042

Analysis Date: 2025-07-20 12:41 UTC

1. Risk Rating: HIGH
   The company exhibits significant solvency and liquidity concerns, evidenced by negative net current assets and negative shareholders’ funds as at the latest financial year end. The sharp deterioration from positive equity in 2022 to negative in 2023 signals financial distress that warrants caution.

2. Key Concerns:

• Negative Net Current Assets and Shareholders’ Funds: At 31 December 2023, net current assets were negative (£-4,953) and shareholders’ funds showed a deficit (£-1,903,998), indicating the company’s liabilities exceed its assets. This undermines its ability to meet short-term obligations.
• Substantial Increase in Current Liabilities: Current liabilities nearly doubled from £279k in 2022 to £512k in 2023, mainly due to increased amounts owed to group undertakings and accruals, which may reflect rising operational or financing pressures.
• Change in Ownership and Directors: A new controlling shareholder (Modulr Holdings Limited) took 75-100% control in November 2024, accompanied by a complete change in directors on the same date. This could imply restructuring or an ownership transfer triggered by financial difficulties, requiring further investigation.

3. Positive Indicators:

• Cash Position Improved Substantially: Cash increased dramatically from £1,926 in 2022 to £474,277 in 2023, which may provide short-term liquidity relief.
• No Overdue Filings: Both accounts and confirmation statements are up to date, indicating compliance with regulatory filing obligations.
• Operating in a Growth Sector: The company operates in business and domestic software development (SIC 62012), a sector with generally strong growth prospects.

4. Due Diligence Notes:

• Review the nature and terms of amounts owed to group undertakings and accruals driving current liabilities higher in 2023 to assess sustainability and repayment risk.
• Clarify the circumstances and financial impact of the ownership change to Modulr Holdings Limited and the director resignations and appointments in November 2024.
• Examine recent trading performance, cash flow forecasts, and any funding arrangements post-2023 accounts to understand if financial distress is being managed or mitigated.
• Investigate whether the company’s negative equity position has triggered any creditor actions or financial covenants breaches.
• Confirm the rationale and financial effect of the related party transactions, particularly loans from directors and inter-company balances.

Executive Summary:
PAYAABLE LTD’s latest accounts reveal a marked deterioration in financial position, with negative equity and increased current liabilities indicating elevated solvency and liquidity risks. While recent cash balances and regulatory compliance are positive, the significant ownership change and director turnover suggest potential operational instability. Further due diligence on intercompany liabilities and post-account developments is essential to assess ongoing viability.