PPAYA LIMITED

Executive Summary

PPAYA LIMITED exhibits a stable financial position with strong equity and liquidity, supported by regular compliance and asset growth. However, the absence of profit and loss details and reliance on significant intangible assets warrant further investigation to assess ongoing operational performance and asset valuation risks. Overall, the company currently presents a low risk profile for investors based on available data.

PPAYA LIMITED - Analysis Report

Company Number: SC682476

Analysis Date: 2025-07-29 20:59 UTC

1. Risk Rating: LOW
   PPAYA LIMITED demonstrates a solid financial position with strong equity, positive net current assets, and no overdue filings or compliance issues. The company appears to be meeting its obligations and maintaining operational stability.

2. Key Concerns:

• Intangible Asset Valuation: A significant portion (£631,804) of total fixed assets is intangible and not amortised yet. This requires monitoring for potential impairment risks if expected future economic benefits do not materialize.
• Profit and Loss Omission: The profit and loss account is not included in the filings, limiting insight into profitability trends and operational cash flow generation.
• Concentration of Control: Two individuals hold between 25-50% share ownership and voting rights each, which may present governance concentration risk.

3. Positive Indicators:

• Strong Shareholders’ Funds: Equity increased substantially from £799,926 in 2021 to £1,598,439 in 2024, indicating capital injections or retained earnings growth.
• Healthy Liquidity: Cash balances remain robust (£161,232 in 2024) with net current assets of £209,867, suggesting ample short-term resources to meet liabilities.
• Timely Compliance: All accounts and confirmation statements are filed on time with no overdue notices.
• Operational Growth: Increase in intangible assets and net assets suggests ongoing investment and expansion of business activities.

4. Due Diligence Notes:

• Request detailed profit and loss accounts or management accounts to assess profitability and cash flow trends.
• Obtain clarification on the nature and recoverability of intangible assets, including any impairment testing results.
• Review director and shareholder agreements to understand the impact of the concentrated ownership structure on decision-making and risk.
• Confirm any off-balance sheet liabilities or contingent risks not disclosed in the current filings.