Company Number: 13787385

Analysis Date: 2025-07-20 17:26 UTC

1. Risk Rating: HIGH
   Despite being an active private limited company, Technology Solution Group Limited exhibits significant liquidity and solvency concerns. The persistent and large negative net current assets position (approximately -£305k as of 2024) indicates the company’s inability to cover short-term liabilities with current assets, raising red flags about immediate financial obligations. The fixed assets contribute heavily to net assets, but these are long-term and likely illiquid, compounding concerns over short-term cash flow and solvency.

2. Key Concerns:

• Negative Working Capital: The company shows a substantial deficit in net current assets for at least two consecutive years, with current liabilities exceeding current assets by over £300k, suggesting potential difficulties in meeting short-term debts.
• Low Cash Balances: Cash on hand has dramatically decreased from £34,502 in 2023 to only £984 in 2024, indicating tightening liquidity and possible cash flow stress.
• Reliance on Fixed Assets: The company’s net assets are largely tied up in tangible fixed assets (£551,789), which are generally less liquid and may not be readily convertible to cash to meet liabilities, increasing solvency risk.

3. Positive Indicators:

• No Overdue Filings: The company is current with statutory filing obligations (accounts and confirmation statement), which suggests good regulatory compliance and governance practices.
• Stable Shareholding and Management: The three directors are also the significant controllers, each holding 25-50% shares with equal voting rights and appointments, which can facilitate aligned decision-making and operational stability.
• Going Concern Statement: Directors have prepared accounts on a going concern basis, indicating confidence in the company’s ability to continue operations despite current financial challenges.

4. Due Diligence Notes:

• Nature and Valuation of Fixed Assets: Investigate the composition, valuation method, and realizable value of tangible fixed assets to determine their liquidity and potential to cover liabilities.
• Cash Flow and Debt Structure: Review detailed cash flow statements, repayment schedules, and any off-balance sheet liabilities or contingent obligations to assess the company’s ability to manage short-term financial pressures.
• Revenue and Profitability Trends: Analyze turnover, profit margins, and operational performance to understand if the company can improve liquidity and solvency going forward.
• Related Party Transactions: Given the directors’ significant control, review any related party transactions or loans that may impact financial health or risk profile.
• Creditors and Debts: Scrutinize the nature of current liabilities—whether these are trade payables, loans, or other obligations—and their terms to evaluate urgency and risk of default.