PICT VENTURES LIMITED

Executive Summary

Pict Ventures Limited is an active small private company with significant net liabilities and a large related-party loan that elevates its solvency risk. While the company maintains a strong cash balance and is compliant with filings, its financial position and governance turnover warrant close scrutiny. Continued director support and robust operational execution will be critical to its sustainability.

PICT VENTURES LIMITED - Analysis Report

Company Number: SC716535

Analysis Date: 2025-07-29 20:16 UTC

1. Risk Rating: HIGH
   The company exhibits significant net liabilities, negative shareholders' funds, and a large related-party loan that is repayable within a short timeframe, indicating elevated solvency risk and financial vulnerability.

2. Key Concerns:

• Negative Net Assets: The company has net liabilities of approximately £1.1 million as at 31 December 2023, worsening from £0.39 million the previous year, indicating accumulated losses and erosion of equity.
• Significant Loan Exposure: The company owes £2 million to a director, interest-free and repayable by 12 March 2025. This large related-party loan represents a material obligation that may strain cash flows.
• Director Turnover and Governance: Multiple resignations and appointments of directors and secretaries within a short period could indicate instability in governance and leadership continuity.

3. Positive Indicators:

• Strong Cash Position: Despite negative net assets, the company held £797,594 in cash at year-end 2023, providing some liquidity buffer.
• No Overdue Filings: Accounts and confirmation statements are filed on time, suggesting compliance with statutory obligations.
• Going Concern Statement: Directors have prepared forecasts showing the company can meet obligations for at least 12 months with director financial support, reflecting management awareness and contingency planning.

4. Due Diligence Notes:

• Clarify terms and security arrangements related to the £2 million director loan, including ability and intention to repay on time.
• Review cash flow forecasts underlying the going concern assumption, including revenue generation plans given the company’s recent incorporation and preparatory status.
• Investigate reasons for frequent director and secretary changes to assess potential governance or operational challenges.
• Examine the nature and sustainability of the company’s business activities under SIC codes provided, especially their revenue model and market position.