QASUPCOM GAMES LTD

Executive Summary

Qasupcom Games Ltd shows a notable financial improvement in its first two years of operation, moving from significant net liabilities to a modest positive net asset position. However, liquidity remains a concern due to low cash reserves relative to current liabilities and heavy reliance on debtor collections. The company’s small size, single director control, and limited employee base warrant careful scrutiny of operational sustainability and governance.

QASUPCOM GAMES LTD - Analysis Report

Company Number: 13970704

Analysis Date: 2025-07-29 19:35 UTC

1. Risk Rating: MEDIUM

Justification: Qasupcom Games Ltd has demonstrated a significant turnaround from a negative net asset position (£-174,775) in the 2023 and 2022 financial years to a positive net asset position of £14,161 as of 31 March 2024. However, the company's net current assets remain marginal (£11,073), and cash reserves are relatively low (£27,940) compared to current liabilities (£142,933). The company is very young (incorporated March 2022) and operates in a competitive sector (specialised design, advertising, IT consultancy, and computer game publishing) which may present operational challenges. The absence of audit and limited employee base (1 employee) also restricts visibility into operational robustness.

2. Key Concerns:

• Liquidity Pressure: Current liabilities (£142,933) significantly outweigh cash on hand (£27,940), indicating potential short-term liquidity constraints despite positive net current assets due to substantial debtors (£126,066). Dependency on timely collection of receivables is critical.

• Previous Negative Net Worth: The company reported substantial net liabilities in the prior two years, suggesting historical financial distress or heavy startup losses that may impact sustainability without continued capital infusion or profitability.

• Director and Control Concentration: Single director and 75-100% ownership/control by Mr. Stanislav Pleshchev, with residency in Cyprus, concentrates operational and strategic risk. Limited governance diversity may raise concerns about oversight and decision-making transparency.

3. Positive Indicators:

• Improved Financial Position: Transition from net liabilities of £174,775 to positive net assets of £14,161 within one year demonstrates financial recovery and potential operational progress.

• No Overdue Filings: All statutory accounts and confirmation statements are filed on time, suggesting compliant governance and regulatory adherence.

• Industry Diversification: Engagement across multiple related SIC codes (design, advertising, IT consultancy, computer games publishing) may offer multiple revenue streams and market opportunities.

4. Due Diligence Notes:

• Receivables Quality: Investigate the composition and collectability of the £126,066 debtors balance to assess realisable cash flow potential and credit risk.

• Cash Flow Analysis: Obtain detailed cash flow statements and projections to evaluate ability to meet current liabilities and operational expenses.

• Director Background: Review director’s professional track record, especially given single-person control and foreign residency, to assess governance risk.

• Future Funding Plans: Clarify capital injection or financing arrangements that facilitated the recent turnaround and whether these are sustainable.

• Operational Performance: Request management accounts and client contracts to verify revenue streams, profitability, and operational scale beyond the single employee.

• Audit Waiver Implications: Consider limitations in financial scrutiny due to exemption from audit and whether there are plans to move to audited accounts as the company grows.