Company Number: 15127661

Analysis Date: 2025-07-20 12:32 UTC

1. Risk Rating: MEDIUM
   Justification: TECHJECTS LTD is a newly incorporated private limited company with no trading activity to date and is in a pre-revenue phase. The capitalised intangible asset of £300,000 reflects significant investment in software development, but the absence of revenue and negative net current assets (£-180) indicate limited liquidity. The company has minimal current liabilities and no overdue filings, which reduces immediate regulatory risk. However, the lack of operating cash flow and reliance on capitalised development costs elevate solvency and operational risks until commercialization begins.

2. Key Concerns:

• Pre-revenue Status and Cash Flow: The company has not commenced trading and thus has no income stream to cover liabilities or support ongoing operations, raising liquidity concerns.
• Capitalised Intangible Assets: The £300,000 software development cost is internally valued and unamortised, introducing valuation risk and potential impairment if commercialization is delayed or unsuccessful.
• Limited Working Capital: Negative net current assets, albeit small, suggest the company may struggle to meet short-term obligations without additional funding.

3. Positive Indicators:

• No Overdue Filings or Regulatory Issues: The company is compliant with filing deadlines for accounts and confirmation statements, indicating sound governance practices.
• Strong Shareholders’ Funds: Share capital and retained earnings equal £299,820, reflecting committed shareholder investment backing the development phase.
• Director Control and Transparency: Single director and significant control held by one individual (75-100% ownership) simplifies decision-making and accountability.

4. Due Diligence Notes:

• Investigate the source and sustainability of funding to support ongoing operations until revenue generation.
• Assess the methodology and assumptions used for capitalising software development costs, including plans for amortisation and impairment testing.
• Monitor progress towards commercialization milestones and revenue forecasts to evaluate operational viability.
• Review any contingent liabilities or commitments beyond the disclosed legal services fees.
• Verify the director’s background and capability to successfully execute the business plan.