THE NFT PROJECT LTD.

Executive Summary

THE NFT PROJECT LTD. demonstrates modest improvement in financial position with net assets turning positive in 2023, yet ongoing negative net current assets and reliance on director advances highlight liquidity risks. The company maintains good regulatory compliance and clear ownership structure but remains financially fragile as a micro-entity. Further analysis of cash flows and operational viability is recommended to fully ascertain its risk profile.

THE NFT PROJECT LTD. - Analysis Report

Company Number: 13623135

Analysis Date: 2025-07-29 16:28 UTC

1. Risk Rating: MEDIUM
   The company shows signs of operational continuity with improving net assets but exhibits liquidity stress indicated by negative net current assets. As a micro-entity with limited financial disclosures and modest scale, risks are moderate yet warrant caution.

2. Key Concerns:

• Negative Net Current Assets: The company reported net current liabilities of £679 as of 31-Dec-2023, suggesting potential short-term liquidity pressures to meet immediate obligations.
• Reliance on Director Advances: The interest-free advances to the director (£4,686), although repaid, indicate potential cash flow constraints requiring internal financing support.
• Limited Scale and Profitability History: The company has a micro-entity profile with minimal fixed assets and a history of negative net assets until 2023, reflecting limited financial resilience and uncertain profitability trajectory.

3. Positive Indicators:

• Improved Net Assets Position: Net assets increased from a negative £336 in 2022 to a positive £522 in 2023, indicating some recovery in financial stability.
• No Overdue Filings: Both accounts and confirmation statements are filed on time, reflecting good compliance and governance standards.
• Stable Single Director Ownership: Complete ownership and control by a single director provides clear accountability and decision-making continuity.

4. Due Diligence Notes:

• Review detailed cash flow statements and working capital management to assess liquidity risk and ability to meet short-term liabilities.
• Investigate the nature and terms of director advances, including frequency and repayment patterns, to understand cash flow dependencies.
• Examine revenue generation, profitability trends, and client base stability given the IT consultancy SIC code, to evaluate operational sustainability.
• Confirm no undisclosed contingent liabilities or related party transactions that may impact financial health.
• Assess whether the company’s small scale restricts growth opportunities or exposes it to market volatility.