Risk Analysis: SCAPA TECHNOLOGIES LIMITED

1. Risk Rating: HIGH

The company carries HIGH risk due to persistent and worsening insolvency, with net liabilities exceeding assets by £28,783 as of year-end 2025. The company is in dissolution (effective September 2026), confirming it can no longer operate as a going concern. Net current liabilities have deteriorated from £29,604 to £32,108 year-over-year, and total liabilities exceed total assets by approximately 50%.

2. Key Concerns

Severe Insolvency Position Net assets have been negative since 2021 and are deteriorating annually (-£22,704 in 2023, -£26,279 in 2024, -£28,783 in 2025). Total liabilities (£85,953) substantially exceed total assets (£57,171), leaving the company unable to cover obligations from its balance sheet. The trajectory shows no recovery pattern.

Critical Liquidity Shortfall Current liabilities (£85,953) dwarf current assets (£53,846), resulting in net current liabilities of £32,108. The current ratio stands at approximately 0.63:1, indicating the company cannot meet short-term obligations from liquid assets. With only £3,325 in fixed assets, there are minimal reserves to draw upon.

Dissolution Status The company is actively being dissolved (dissolution date: September 2026). This is a terminal status indicating the business has ceased or is ceasing operations. Any counterparty exposure is effectively unrecoverable through normal business operations.

3. Positive Indicators

Long Operational History: The company was incorporated in 1998, demonstrating over 25 years of operational history prior to decline, suggesting some institutional resilience or market position existed historically.

Filing Compliance: Accounts are filed and up to date (not overdue), with the latest accounts made up to 31 December 2025. This indicates directors are still meeting statutory obligations.

Low Fixed Overhead: With only 2 employees on average, the company maintains minimal payroll obligations, which may have extended its operational life despite insolvency.

4. Due Diligence Notes

PSC Transparency Gap: The PSC register contains only a generic statement rather than named individuals. For a company with share capital of £93,852, the absence of declared persons with significant control is a governance concern and may indicate non-compliance with PSC notification requirements.

2022 Anomaly Investigation: Net assets swung dramatically from -£3,503 (2021) to +£54,081 (2022) before returning to negative territory. This warrants investigation—was this a capital injection, asset revaluation, or related-party transaction that temporarily masked underlying weakness?

Creditor Composition Unknown: Micro-entity accounts provide no breakdown of creditors. It is unclear whether the £85,953 in current liabilities includes related-party loans, trade creditors, or HMRC obligations. The nature of these liabilities significantly affects recovery prospects for any counterparty.

Director Disqualification Records: No disqualification records appear in the data provided, but given the insolvency trajectory, it would be prudent to verify whether directors Neil Sanderson or Armen Avedisjian have any pending disqualification proceedings or directorships in other insolvent entities.

Dissolution Process Verification: Confirm whether the dissolution is voluntary (striking off by directors) or compulsory (court-ordered). The presence of significant creditors may entitle them to object to the dissolution, potentially pushing the company into formal insolvency proceedings.