TECH INFUSION LIMITED

Executive Summary

Tech Infusion Limited shows signs of financial distress with negative equity and net current liabilities, raising significant solvency and liquidity risks. While compliance with statutory filings is up to date and management appears stable, operational capacity is minimal. Prospective investors should conduct detailed due diligence on the causes of losses, liquidity position, and business sustainability before considering investment.

TECH INFUSION LIMITED - Analysis Report

Company Number: 13887674

Analysis Date: 2025-07-20 17:06 UTC

1. Risk Rating: HIGH

   The company exhibits significant solvency and liquidity concerns, reflected by negative net current assets and shareholders' funds. The absence of employees and limited asset base further compound operational risks for an entity in the IT consultancy sector.

2. Key Concerns:

   • Solvency and Negative Equity: Shareholders’ funds declined from £649 in 2023 to a negative £324 in 2024, indicating accumulated losses and potential insolvency risk.
   • Liquidity Issues: Net current liabilities increased to £877 at the latest year-end, suggesting the company may struggle to meet short-term obligations without additional financing.
   • Operational Sustainability: The company had no employees during the year, which may indicate limited operational capacity or reliance on the sole director, potentially raising concerns about business continuity and growth prospects.

3. Positive Indicators:

   • Compliance and Filing: The company is current with its statutory filings, with no overdue accounts or confirmation statements, indicating good regulatory compliance.
   • Director Control and Stability: The sole director, Mr. Awais Ashfaq, has maintained continuous control and is also the ultimate controlling party, suggesting stable governance at the ownership level.
   • Industry Focus: Operating in IT consultancy and computer facilities management, sectors with generally strong demand, which could provide growth opportunities if operational issues are addressed.

4. Due Diligence Notes:

   • Investigate the reasons behind the negative retained earnings and whether losses are expected to continue or are one-off events.
   • Review cash flow statements and bank balances to assess liquidity beyond the balance sheet snapshot.
   • Understand the business model and client base given the absence of employees, including reliance on subcontractors or director’s personal time.
   • Verify any director loans or related party transactions and their terms, as there is a growing amount owed to the director.
   • Assess plans for recapitalisation or external funding to support solvency and liquidity.