Company Number: 15053845

Analysis Date: 2025-07-20 13:10 UTC

1. Risk Rating: MEDIUM
   Techworthy Limited is a recently incorporated private limited company with a single reported financial year. The company shows positive net current assets and net assets, supported by a reasonable cash position. However, there are notable liabilities, including taxation and social security debts, and some longer-term creditors. The absence of turnover and profit/loss data limits a full solvency assessment. Therefore, while no immediate distress signals are evident, the risk remains moderate due to limited operating history and the presence of creditor obligations.

2. Key Concerns:

• Taxation and Social Security Liability: The current liabilities include £6,425 due to taxation and social security, which represents a significant portion of short-term obligations and may indicate cash flow timing issues or delayed payments to HMRC.
• Limited Operating History: Incorporated in August 2023, the company has less than one full year of trading history, restricting the ability to evaluate ongoing operational viability or revenue sustainability.
• Long-term Creditors: Presence of creditors due after more than one year (£1,339) without detailed disclosure on terms or counterparties increases uncertainty around future cash flow commitments.

3. Positive Indicators:

• Strong Cash Position Relative to Liabilities: Cash of £27,313 exceeds current liabilities of £6,426, suggesting adequate liquidity to meet short-term obligations as of the balance sheet date.
• Positive Net Assets and Shareholders’ Funds: Net assets stand at £21,702, indicating equity backing and no apparent insolvency at the reporting date.
• No Overdue Filings or Compliance Issues: The company’s accounts and confirmation statement filings are up to date, evidencing good governance and regulatory compliance to date.

4. Due Diligence Notes:

• Clarify Turnover and Profitability: Obtain detailed income statement information or management accounts to assess revenue generation and profitability trends since incorporation.
• Investigate Nature of Tax and Social Security Creditors: Confirm if these amounts are accrued liabilities or overdue payments; understand payment plans or HMRC interactions to assess any risk of enforcement or penalties.
• Review Long-term Creditors: Determine the nature, terms, and counterparties of the £1,339 long-term creditors to evaluate future cash flow impact.
• Assess Business Model and Pipeline: Given the company operates in "Other information technology service activities," evaluate contracts, client base, and operational scalability to judge sustainability.