SHORTWORX LIMITED

Executive Summary

Shortworx Limited has shown an encouraging turnaround in solvency with a modest positive net asset position in 2024 after several years of negative equity. However, its small scale, limited liquidity buffer, and historical losses warrant cautious assessment. Further due diligence on cash flow, business viability, and governance is advised to better understand ongoing operational and financial stability.

SHORTWORX LIMITED - Analysis Report

Company Number: 12907000

Analysis Date: 2025-07-29 20:51 UTC

1. Risk Rating: MEDIUM
   Shortworx Limited demonstrates a recent turnaround from persistent negative net assets and shareholders' funds to a modest positive position in 2024. While this indicates some improvement in solvency, the company remains small and its net assets are minimal, suggesting limited financial cushion. The micro-entity status and unaudited accounts limit insight into detailed operational performance, warranting caution.

2. Key Concerns:

• Historical Negative Equity: The company recorded negative shareholders' funds from incorporation through 2023, indicating prior insolvency or reliance on external support. Although 2024 shows a positive net asset position (£1,332), the margin is very slim.
• Limited Working Capital: Current assets exceed current liabilities by only £1,186 as of 2024-09-30, signifying a narrow liquidity buffer that could be vulnerable to operational disruptions or unexpected expenses.
• Minimal Operational Scale: The company employs just one person on average and operates under a micro-entity filing regime, suggesting limited operational capacity and potentially constrained revenue streams. This could impact sustainable cash flow generation.

3. Positive Indicators:

• Recent Solvency Improvement: The shift from negative to positive net assets and shareholders’ funds in the latest financial year reflects some recovery or capital injection.
• Timely Filings: The company is current with both accounts and confirmation statement filings, indicating compliance with regulatory requirements and governance discipline.
• Low Fixed Asset Base: Fixed assets are minimal (£146 in 2024), implying a low capital expenditure burden and potentially lean operational model.

4. Due Diligence Notes:

• Investigate the Source of Solvency Improvement: Review details behind the positive shift in net assets in 2024—whether from capital injection, profit generation, or other means.
• Assess Cash Flow and Revenue Trends: Obtain management accounts or cash flow statements to understand operational liquidity and revenue sustainability beyond balance sheet snapshots.
• Examine Director and PSC Information: Confirm absence of any director disqualifications or adverse records and identify persons with significant control to assess governance risks.
• Review Business Model and Market Position: Given the SIC code "Printing not elsewhere classified," clarify the niche served and competitive environment to evaluate operational stability.
• Evaluate Risk of Overdependence: With just one employee, consider the risk posed by key person dependency and operational continuity plans.