Company Number: 15076990

Analysis Date: 2025-07-20 14:50 UTC

1. Risk Rating: MEDIUM

Justification: Tech And Knights Limited is a newly incorporated company (August 2023) with limited financial history. The accounts show positive net assets but a low cash balance relative to current liabilities and a significant director loan classified as long-term creditor. The company is solvent on a balance sheet basis but liquidity appears tight. Absence of employees and small scale indicates an early-stage or investment-holding business rather than an operational trading entity.

2. Key Concerns:

• Liquidity Pressure: Cash at bank is £2,477 against current liabilities of £800 and director loans of £5,206 due after one year, indicating limited liquid resources to cover short-term needs comfortably.
• Reliance on Director Loans: £5,206 owed to directors represents a significant portion of liabilities. This reliance on related-party funding could present risk if the director’s support ceases.
• Lack of Operational Activity: No employees and minimal trading history suggest the business is in an investment or development phase; sustainability depends on future business development or capital injections.

3. Positive Indicators:

• Positive Net Assets: Net assets stand at £1,047, indicating the company is not insolvent.
• Compliance with Filing Requirements: No overdue filings; accounts and confirmation statements are up to date, which reflects good regulatory compliance.
• Clear Ownership and Control: Single shareholder/director with 75-100% control provides clear governance and decision-making structure.

4. Due Diligence Notes:

• Investigate the nature and terms of the director loans, including repayment schedules, interest, and security arrangements.
• Review business plans or projections to assess how the company intends to generate revenue or cash flow going forward.
• Confirm whether the tangible fixed assets relate to operational use or investment (e.g., property or equipment).
• Verify any contingent liabilities or off-balance-sheet obligations not disclosed in the accounts.
• Monitor future filings for signs of operational progress or additional financing rounds.