TAKEBACK SOFTWARE LTD

Executive Summary

TakeBack Software Ltd exhibits a high financial risk profile marked by significant liquidity and solvency challenges. Despite compliance with filing requirements and an active market presence, the worsening net current liability position and negative shareholders’ funds raise concerns about the company’s ability to meet its obligations and sustain operations. Further due diligence is required to understand management’s strategy and the underlying causes of financial distress.

TAKEBACK SOFTWARE LTD - Analysis Report

Company Number: SC680421

Analysis Date: 2025-07-29 20:33 UTC

1. Risk Rating: HIGH
   The company shows significant solvency and liquidity risks, with persistent and worsening net current liability positions and negative shareholders’ funds. The financial statements reveal a deepening deficit and liabilities far exceeding current assets, indicating a distressed financial position.

2. Key Concerns:

   • Severe Negative Net Current Assets: As of 31 March 2024, net current liabilities stand at approximately £217,980, nearly doubling from the prior year’s £114,483 deficit, signaling increasing liquidity pressure.
   • Negative Shareholders’ Funds: The company’s net liabilities have increased from £114,143 in 2023 to £217,735 in 2024, reflecting accumulated losses and erosion of capital, which threatens long-term solvency.
   • No Employees Listed: The accounts report zero employees during the year, raising questions about operational activity and sustainability of the business model despite being active and trading in software development.

3. Positive Indicators:

   • Current Filing Compliance: The company’s accounts and confirmation statements are up to date with no overdue filings, demonstrating regulatory compliance and governance discipline.
   • Active Website and Contact Availability: The company maintains an active website with multiple communication channels, suggesting ongoing business operations and market presence.
   • Experienced Management Team: Directors have been in place since incorporation, with no indicated disqualifications or governance concerns, which supports operational continuity.

4. Due Diligence Notes:

   • Investigate the nature and maturity of the large current liabilities (£290k) and whether there is any restructuring or payment plan in place.
   • Clarify the company’s current revenue streams and operational model given the absence of employees and negative equity.
   • Review any contingent liabilities, related party transactions, or off-balance sheet commitments that may affect financial stability.
   • Assess directors’ plans or funding commitments to address the deteriorating financial position.
   • Verify the accuracy of reported assets and liabilities given the small asset base relative to liabilities.