SIMCRAFT TECH LTD

Executive Summary

SIMCRAFT TECH LTD demonstrates a distressed financial position with significant negative net assets and ongoing operating losses, raising serious solvency and liquidity risks. While regulatory filings are up to date and no off-balance sheet liabilities are reported, the company’s ability to sustain operations without additional funding is questionable. Further investigation into cash flows, funding sources, and business viability is strongly recommended before investment consideration.

SIMCRAFT TECH LTD - Analysis Report

Company Number: 14344317

Analysis Date: 2025-07-19 12:13 UTC

1. Risk Rating: HIGH
   The company exhibits significant solvency and liquidity concerns, with net liabilities increasing sharply from £39,921 negative in 2023 to £46,255 negative in 2024, indicating a deteriorating financial position.

2. Key Concerns:

• Severe Negative Net Assets: The company’s net liabilities have grown substantially, reflecting accumulated losses and insufficient equity to cover liabilities.
• Liquidity Shortfall: Current liabilities (£46,650) vastly exceed current assets (£394), resulting in a negative working capital position of £46,256, which raises concerns about the company’s ability to meet short-term obligations.
• Consistent Loss-Making: The company recorded losses in both years reported (£31,121 loss in 2023 and £6,334 loss in 2024), suggesting ongoing operational challenges and lack of profitability.

3. Positive Indicators:

• Compliance with Filings: The company is current on both its accounts and confirmation statement filings, indicating good regulatory compliance.
• Micro-Entity Status: The company benefits from reduced filing requirements, which is appropriate given its size and early stage.
• No Off-Balance Sheet Liabilities: The accounts disclose no off-balance sheet items, which simplifies risk assessment.

4. Due Diligence Notes:

• Investigate Cash Flow and Funding Sources: Given the large negative working capital, review cash flow statements and any external financing arrangements or shareholder support.
• Assess Business Model Sustainability: Understand the company’s plans to return to profitability and how it intends to manage its liabilities.
• Director and Management Background: Confirm experience and track record of current directors, especially given the financial losses and negative equity.
• Contracts and Revenue Pipeline: Verify existence and stability of revenue streams to assess future operational viability.