PROMPT BUSINESS AI LTD

Executive Summary

PROMPT BUSINESS AI LTD currently faces significant financial challenges characterized by negative net assets and poor liquidity, raising high solvency and operational risks. While regulatory compliance is satisfactory and management control is concentrated, the company's financial position suggests vulnerability without clear evidence of operational cash flow or debt servicing capability. Further detailed financial review is recommended to ascertain business sustainability.

PROMPT BUSINESS AI LTD - Analysis Report

Company Number: 12971726

Analysis Date: 2025-07-29 17:08 UTC

1. Risk Rating: HIGH

Justification: The company exhibits signs of financial distress with negative net assets and net current liabilities worsening over recent periods. The limited asset base, especially current assets of only £4 against current liabilities of £1,122 as of 2023, indicates significant liquidity risk and inability to meet short-term obligations. The negative shareholders' funds and reliance on long-term creditors further elevate solvency concerns.

2. Key Concerns:

• Negative Net Assets and Shareholders' Funds: Net assets declined from £934 in 2022 to -£13 in 2023, reflecting accumulated losses or write-downs eroding equity.
• Poor Liquidity Position: Current liabilities exceed current assets by £1,118 in 2023, suggesting potential cash flow difficulties to cover immediate debts.
• Increased Long-Term Creditors: Creditors falling due after one year increased from £540 (2022) to £1,122 (2023), which may indicate debt restructuring or increased borrowing, raising future repayment risk.

3. Positive Indicators:

• Compliance with Filing Requirements: No overdue accounts or confirmation statements, indicating management is maintaining regulatory compliance.
• Stable Director Control: The sole controlling director holds 75-100% share and voting rights, which may allow for agile decision-making.
• No Employees: The absence of employees may reduce operating costs and financial burdens.

4. Due Diligence Notes:

• Investigate the nature and terms of the long-term creditors to understand debt servicing obligations and potential refinancing risks.
• Review cash flow statements or management accounts to assess operational cash generation capacity.
• Clarify the cause of the negative net assets in 2023, including any impairments, write-offs, or extraordinary expenses.
• Assess the business model viability given the micro entity status and minimal asset base.
• Confirm whether any director loans or related party transactions exist that may impact financial stability.