PRODUCT AGILITY LTD

Executive Summary

Product Agility Ltd has experienced a marked decline in financial health over the latest year, moving into negative net asset territory primarily due to increased current liabilities and reduced current assets. While the company remains compliant with filings and is active in a growth sector, its liquidity and solvency risks are significant and warrant further investigation before considering investment.

PRODUCT AGILITY LTD - Analysis Report

Company Number: 13246732

Analysis Date: 2025-07-29 13:32 UTC

1. Risk Rating: HIGH
   The company shows a significant deterioration in financial position within the latest reported year, moving from positive net assets of £13,222 in 2023 to negative net assets of £14,529 in 2024. This indicates an erosion of equity and potential insolvency risk.

2. Key Concerns:

• Solvency Risk: The company’s net current liabilities of £14,651 and negative net assets indicate it may not be able to meet its short-term obligations without additional funding.
• Liquidity Concerns: Current assets dropped sharply from £17,595 to £2,143 while current liabilities increased significantly, pointing to potential cash flow difficulties.
• Operational Stability: The average number of employees remained at one, and there is minimal fixed asset base, which may indicate limited operational scale and resilience.

3. Positive Indicators:

• The company is active and has complied with all filing deadlines, showing regulatory compliance and governance discipline.
• Ownership is concentrated with a single controlling shareholder, which may facilitate decisive management actions.
• The business operates in IT consultancy (SIC 62020), a sector with potential for growth and adaptability.

4. Due Diligence Notes:

• Investigate the underlying causes of the large increase in current liabilities and the sharp reduction in current assets over the year.
• Review management accounts or cash flow statements for recent periods to assess ongoing liquidity and operational performance.
• Assess whether the company has any external financing arrangements or shareholder support to address the deficit in net assets.
• Confirm no contingent liabilities or off-balance sheet obligations that may exacerbate financial strain.
• Evaluate the business plan and market conditions to determine if a turnaround or recovery is feasible.