PROJECT TECHCON BIDCO LIMITED

Executive Summary

Project Techcon Bidco Limited, a recently incorporated holding company, exhibits a high risk profile primarily due to substantial net liabilities and negative working capital. While operational stability is bolstered by an established subsidiary and strong group ownership, the company’s solvency and liquidity are reliant on continued group support. Prospective investors should conduct thorough due diligence on the company’s debt structure and group backing before proceeding.

PROJECT TECHCON BIDCO LIMITED - Analysis Report

Company Number: 14801543

Analysis Date: 2025-07-29 16:50 UTC

1. Risk Rating: HIGH
   The company shows significant solvency risk with net liabilities of approximately £938.5k and current liabilities exceeding current assets, resulting in negative net current assets. The high level of long-term liabilities (£22.2m) relative to total assets suggests heavy gearing and financial strain in the early stage of the company’s existence.

2. Key Concerns:

• Negative shareholders’ funds and net liabilities indicate an undercapitalized balance sheet and potential insolvency risk without external support.
• Very high current liabilities, particularly long-term creditors, against minimal current assets (cash, debtors) raise liquidity concerns and potential cash flow constraints.
• Dependence on group support for going concern status as disclosed in the auditor’s report may imply operational sustainability is contingent on external funding or guarantees.

3. Positive Indicators:

• The company is part of a group structure with a controlling shareholder owning 75-100% shares and voting rights, which may provide strategic and financial backing.
• The underlying business (Leading Resolutions Limited) appears established and trading successfully for over 20 years, providing a stable operational base behind the holding company.
• No overdue filings or regulatory compliance issues were noted, indicating good governance practices to date.

4. Due Diligence Notes:

• Investigate the nature and terms of the £22.2m creditors falling due after more than one year, including interest rates, repayment schedules, and covenants.
• Assess the strength and reliability of the controlling shareholder’s support and any contingent liabilities or guarantees.
• Review cash flow projections and working capital management for the holding company and its operating subsidiaries to ascertain ongoing liquidity and operational viability.
• Confirm any related-party transactions and their arm’s length nature as stated, to ensure no undue risk or financial exposure.
• Examine the reasons for the significant operating loss (£671.9k) in the initial period and plans for profitability.