TECHNOLOGY SOLUTION GROUP LIMITED

Executive Summary

Technology Solution Group Limited currently faces high financial risk primarily due to significant negative working capital and minimal cash reserves, despite maintaining regulatory compliance and stable management control. The company’s asset base is heavily weighted toward fixed assets, which may not be easily liquidated to cover short-term liabilities. Further investigation into asset liquidity, cash flow, and operational profitability is essential before considering investment.

TECHNOLOGY SOLUTION GROUP LIMITED - Analysis Report

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.