Company Number: 12660263

Analysis Date: 2025-07-20 13:40 UTC

1. Risk Rating: HIGH

   Justification: The company exhibits significant solvency risk, with liabilities greatly exceeding assets, negative net assets, and substantial long-term creditors. This financial imbalance is a serious red flag for investors regarding the company’s ability to meet its obligations.

2. Key Concerns:

   • Severe Negative Net Asset Position: As of 30 June 2023, QFIXX LTD shows net liabilities of £216,685, indicating the company’s total liabilities exceed its assets by a large margin.
   • High Long-Term Creditors: Creditors due after more than one year amount to £215,622, which is disproportionately large relative to current assets (£537) and total equity.
   • Minimal Current Assets vs Liabilities: Current assets of only £537 contrasted with current liabilities of £1,600, resulting in negative working capital (-£1,063), suggesting liquidity constraints and potential cash flow difficulties.

3. Positive Indicators:

   • Compliance with Filing Requirements: The company is up to date with both accounts and confirmation statement filings, showing regulatory compliance and operational transparency.
   • Stable Directorship: The sole director, who is also the majority shareholder, has held the position since incorporation, providing continuity in management.
   • Active Company Status: The company is active and incorporated relatively recently (2020), indicating it is still operational and pursuing its business activities.

4. Due Diligence Notes:

   • Investigate Nature and Terms of Long-Term Creditors: Clarify the composition of the £215k+ long-term liabilities, including whether these are loans from related parties or external creditors, and the repayment terms.
   • Examine Cash Flow and Profitability Trends: Review detailed management accounts (if available) to assess ongoing cash generation capacity and operational sustainability beyond the micro-entity accounts.
   • Assess Business Model and Market Position: Given the SIC code (Other IT service activities) and website presence, evaluate the revenue model and client base to understand prospects for improving financial health.
   • Confirm Absence of Director Disqualifications or Legal Issues: Although no such records are indicated here, further checks with Insolvency Service records are prudent given the financial distress signals.