TOKIFY LTD

Executive Summary

TOKIFY LTD is a recently incorporated private IT services company showing strong liquidity and solvency supported by a significant capital injection. While the company is currently loss-making with limited trading history, it maintains good regulatory compliance and a healthy cash position. Further due diligence is recommended to understand the sustainability of operations and the nature of capital funding.

TOKIFY LTD - Analysis Report

Company Number: 13827191

Analysis Date: 2025-07-20 12:53 UTC

1. Risk Rating: LOW
   TOKIFY LTD demonstrates a strong solvency and liquidity position as of the latest financial year, with no overdue filings and positive net assets supported by substantial cash reserves.

2. Key Concerns:

• The company has a very low share capital (£1.00 called up share capital historically, though accounts show £1,003, indicating potential recent increase but still minimal relative to reserves).
• Accumulated losses remain substantial (£362k in the profit and loss account), suggesting ongoing operating losses despite strong cash injection via share premium.
• The company is very young (incorporated 2022), meaning limited financial history to assess operational sustainability and market traction.

3. Positive Indicators:

• Significant increase in cash from £9,923 in 2023 to £619,312 in 2024, indicating a strong recent capital injection or investment.
• Positive net current assets of £618,041 and net assets of £617,974 as at 31 January 2024, reflecting strong short-term liquidity and overall financial stability.
• No overdue statutory filings and accounts are up to date, indicating good compliance and governance practices.
• The business operates in the IT services sector (SIC 62090), a sector with generally scalable and low fixed asset requirements, consistent with the low tangible fixed assets reported (£114).

4. Due Diligence Notes:

• Investigate the source and nature of the large share premium account (£979,214) to understand investor backing and capital structure.
• Understand the business model and revenue generation to assess whether the accumulated losses will persist or reduce going forward.
• Confirm the company’s cash flow projections and burn rate given the net losses and limited employee base (2 employees).
• Review any off-balance sheet liabilities or contingent risks not visible in the abridged accounts.
• Validate director backgrounds and their strategic plans for the company’s growth, given the young age and current financial position.