TECHLENS LTD

Executive Summary

Techlens Ltd maintains a low-risk profile with adequate liquidity and stable equity considering its small size and IT consultancy focus. The company complies with regulatory requirements and has consistent director tenure. However, modest declines in cash and fixed assets suggest the need for ongoing monitoring of cash flow and asset management. Further due diligence on debtor quality and operational scalability is recommended.

TECHLENS LTD - Analysis Report

Company Number: 13574502

Analysis Date: 2025-07-29 21:09 UTC

1. Risk Rating: LOW
   Techlens Ltd demonstrates a solid liquidity position with net current assets consistently positive over recent years. The company has maintained compliance with filing deadlines and has no indication of financial distress or regulatory issues. Its equity base is stable, and operational scale appears appropriate for its size.

2. Key Concerns:

• Declining Cash Reserves: Cash decreased from £75,432 in 2023 to £53,652 in 2024, which may warrant monitoring for cash flow management.
• Fixed Asset Depreciation: Tangible assets net book value declined by approximately £9,300, indicating ongoing asset usage and depreciation; replacement or maintenance costs could impact future cash flows.
• Small Scale Operations: With only 2 employees and modest asset base, the company may face scalability and resilience challenges if market conditions shift or key personnel depart.

3. Positive Indicators:

• Positive Net Current Assets: £30,380 as of 2024, showing the company can meet short-term liabilities comfortably.
• No Overdue Filings: Both accounts and confirmation statement filings are up to date, reflecting good governance and regulatory compliance.
• Shareholders’ Funds Stability: Equity remains stable around £68k, evidencing no erosion of net assets over the reporting period.
• Directors’ Stability: Both directors have been in post since incorporation with no negative records noted.

4. Due Diligence Notes:

• Verify the nature and collectability of the £3,000 debtor balance reported in 2024 to ensure it does not pose a liquidity risk.
• Review cash flow statements (not provided) to assess underlying cash generation and outflows, particularly given the reduction in cash balances.
• Assess contract pipeline and client diversification given the company’s small size and reliance on IT consultancy activities.
• Confirm that the loans from directors (£328) are properly documented and the terms do not present financial strain.
• Investigate fixed assets’ condition and any planned capital expenditures to maintain operational capability.