TAO-AYACHE CONSULTANCY SERVICES LIMITED
Company number 11668582 · Monitor this company
This analysis was written by an AI from the company's public filings. It may contain errors or omissions and is not financial or professional advice.
Risk Assessment: TAO-AYACHE CONSULTANCY SERVICES LIMITED
1. Risk Rating: HIGH
Justification: The company is technically insolvent with net liabilities of £31,008 and virtually no liquid assets (£12 in current assets). While the balance sheet position has marginally improved year-on-year, the company remains dependent on creditor forbearance and director support to continue as a going concern. The overdue filing status compounds governance concerns.
2. Key Concerns
Concern 1: Technical Insolvency Shareholders' funds have been deeply negative since at least FY2020 (£-38,937). As at November 2023, net liabilities stand at £-31,008. Total assets of £963 are dwarfed by total liabilities exceeding £31,000. The company cannot meet its obligations from its own resources and is reliant on creditors not demanding repayment.
Concern 2: Critically Low Liquidity Current assets of just £12 against current liabilities of £4,035 leaves the company with net current liabilities of £-4,023. There is effectively no cash buffer or liquid asset reserve to cover short-term obligations. The fixed assets (£951) are unlikely to be readily realisable.
Concern 3: Overdue Accounts and Minimal Disclosure Accounts for the period ending 30 November 2023 are marked as overdue. As a micro-entity filing under FRS 105, the company provides no profit and loss account, no cash flow statement, and limited balance sheet detail. This opacity makes it impossible to assess trading performance, revenue sustainability, or the nature of the significant non-current liabilities (£27,936 due after one year).
3. Positive Indicators
- Improving Trajectory: Net liabilities reduced from £-39,055 (FY2022) to £-31,008 (FY2023), suggesting either profitable trading or debt restructure/forgiveness. Current liabilities also decreased from £8,430 to £4,035.
- Continued Operation: The company has been active since 2018 and continues to file, albeit late. Both directors remain engaged and signed the accounts as recently as August 2024.
- Non-Current Creditor Position: The bulk of liabilities (£27,936) fall due after more than one year, which may indicate director loans or patient creditors rather than immediate demand debt.
4. Due Diligence Notes
| Item | Investigation Required |
|---|---|
| Nature of non-current liabilities | The £27,936 due after more than one year is material. Determine whether this represents director loans, third-party debt, or other obligations. Director loans would be less concerning than external debt. |
| Related party transactions | Given the minimal share capital (£1) and negative equity, the company is almost certainly funded by directors or related parties. Obtain confirmation of any director loan balances and repayment terms. |
| Revenue and profitability | No P&L is disclosed. Request management accounts to establish whether the company generates sufficient revenue to service its debts and whether the improvement in net liabilities stems from trading profits. |
| Going concern basis | The accounts contain no explicit going concern statement. Obtain director confirmation of their assessment and any support letters regarding ongoing funding. |
| Overdue accounts | Clarify the reason for late filing and whether any penalties have been incurred. This may indicate administrative strain or cash constraints. |
| SIC code diversity | The company lists four disparate SIC codes (IT consultancy, real estate trading, real estate management, other management consultancy). Confirm the actual trading activity and whether real estate activities are active or dormant. |
| Registered address | The registered office is at Primera Accountants—verify whether this is purely a correspondence address or if there is a substantive trading premises elsewhere. |