TECH DEC LTD

Executive Summary

Tech Dec Ltd is a newly incorporated micro-entity operating within the building cleaning and painting sector, currently demonstrating a negative net working capital position that raises liquidity concerns. The company’s small operational scale and sole director/shareholder control add governance and operational risk factors. While the company remains compliant with filing obligations, further due diligence on cash flow and liabilities is recommended to assess the company’s financial stability and operational viability.

TECH DEC LTD - Analysis Report

Company Number: 15430636

Analysis Date: 2025-07-20 15:27 UTC

1. Risk Rating: HIGH
   Justification: The company exhibits a negative net working capital position with current liabilities significantly exceeding current assets, indicating potential liquidity challenges. The micro-entity scale and very limited net assets restrict financial resilience. Additionally, being newly incorporated with only one financial period filed provides minimal track record for assessing operational stability.

2. Key Concerns:

• Liquidity Risk: Current liabilities (£29,323) are nearly three times current assets (£9,753), resulting in net current liabilities of approximately £19,189, which suggests potential difficulty meeting short-term obligations.
• Operational Scale and Sustainability: With only 3 employees and limited fixed assets (£20,495), the company’s operational base is very small, raising concerns about its ability to generate sufficient cash flow or scale operations.
• Concentration of Control: The sole director and 100% shareholder, Mr. Neil Alan Craggs, controls all voting rights and appoints/removes directors. This concentration could pose governance risks, especially in the absence of other oversight mechanisms.

3. Positive Indicators:

• Compliance: No overdue filings or accounts; the company has met both statutory filing deadlines for accounts and confirmation statements on time.
• Clear Industry Focus: Classified under SIC codes 81229 (other building and industrial cleaning) and 43341 (painting), indicating a defined operational sector which may facilitate targeted business development.
• No Auditor Requirement: As a micro-entity, exemption from audit reduces compliance costs and complexity, appropriate for the size and scale of operations.

4. Due Diligence Notes:

• Investigate the nature and timing of current liabilities to assess if these are trade payables, short-term loans, or other obligations, and the company’s plans for meeting these.
• Review cash flow statements or management accounts (if available) to better understand liquidity trends since incorporation.
• Examine contracts or business pipeline to evaluate revenue generation potential and sustainability of operations.
• Assess any related-party transactions or director loans given the single-person control structure.
• Consider credit references or trade references to gauge payment behavior and supplier confidence.