TECH CELL LIMITED

Executive Summary

Tech Cell Limited’s most recent financial statements reveal a concerning deterioration in financial health, with a substantial liquidity deficit and negative net assets indicating elevated solvency risk. While the company maintains compliance with filing obligations and remains active, the rapid financial decline within a short operating period warrants detailed investigation into its operational viability and cash flow management. Investors should exercise caution and seek further insight into underlying causes before committing capital.

TECH CELL LIMITED - Analysis Report

Company Number: 14338989

Analysis Date: 2025-07-20 11:03 UTC

1. Risk Rating: HIGH
   The company exhibits significant solvency concerns as evidenced by its negative net assets and net current assets in the latest financial year. The magnitude of the working capital deficit indicates an inability to meet short-term obligations from existing current assets.

2. Key Concerns:

• Negative Net Assets: The company’s net assets moved from a positive £9,382 in 2023 to a negative £22,782 in 2024, signaling erosion of equity and potential insolvency risk.
• Severe Liquidity Shortfall: Current liabilities (£27,934) exceed current assets (£1,765) by a large margin, resulting in a negative net current asset position (working capital) of £-26,169. This suggests cash flow difficulties and possible inability to cover immediate liabilities.
• Rapid Financial Deterioration: Within one year, the company’s financial position deteriorated dramatically despite being a relatively new entity (incorporated 2022). The accounts do not provide details on causes, but the scale of decline is a red flag for operational sustainability.

3. Positive Indicators:

• Compliance with Filing Requirements: The company is up to date with accounts and confirmation statement filings, indicating adherence to regulatory deadlines and governance standards.
• Small Scale Operation: The micro-entity classification suggests limited complexity and potentially lower operating overheads.
• Active Status: The company remains active and not under any formal insolvency procedure.

4. Due Diligence Notes:

• Investigate the reasons behind the sharp decline in current assets and net assets from 2023 to 2024, including any operational losses, increased liabilities, or write-downs.
• Review cash flow statements and management reports (if available) to assess liquidity management and debt servicing capacity.
• Confirm whether there are any contingent liabilities or off-balance sheet obligations not reflected in the accounts.
• Evaluate the business model and sales pipeline in the mobile phone retail sector to understand sustainability and growth prospects.
• Verify director background and any potential related party transactions given the sole director status.