TRIPLE PIPELINE LTD

Executive Summary

Triple Pipeline Ltd presents high financial risk primarily driven by substantial current liabilities outstripping current assets, resulting in a significant working capital deficit and negative net equity. While statutory compliance and stable governance are positive factors, the company’s liquidity position and asset amortisation trends warrant close scrutiny. Further due diligence on cash flow management and recoverability of assets is essential to evaluate the firm’s sustainability.

TRIPLE PIPELINE LTD - Analysis Report

Company Number: 13343700

Analysis Date: 2025-07-20 17:18 UTC

1. Risk Rating: HIGH
   The company exhibits significant solvency and liquidity risks due to persistently large net current liability positions and a substantial net asset deficit. The current liabilities are approximately five times the current assets in the latest financial year, indicating a severe working capital shortfall. Negative net assets further underscore financial distress.

2. Key Concerns:

• Severe liquidity shortfall: Current assets (£203k) versus current liabilities (£1.03m) yield a net current liability of £826k, indicating the company does not have sufficient short-term resources to meet its obligations as they fall due.
• Negative net assets: The company’s net liabilities increased to £635k, reflecting accumulated losses and erosion of shareholder equity, which raises concerns about the company’s ongoing viability.
• Declining intangible asset value: Intangible assets (software development costs) have been amortised significantly from £514k to £192k in one year, reflecting write-down of capitalised development costs and possible challenges in realising associated economic benefits.

3. Positive Indicators:

• No overdue filings: The company’s annual accounts and confirmation statements are up to date, indicating compliance with statutory requirements.
• Stable director base: Four directors have been in place since incorporation with no disqualifications or adverse governance flags noted.
• Active business classification: The company operates in software development (SIC 62012), a sector with growth potential, and maintains a small team (4 employees), which may facilitate operational flexibility.

4. Due Diligence Notes:

• Cash flow and creditor negotiations: Investigate the company’s cash flow forecasts and arrangements with creditors given the large short-term liability burden relative to cash and working capital.
• Recovery prospects of debtors: Review the collectability and ageing profile of trade debtors (£200k) to assess whether these are realistically convertible to cash.
• Going concern assumptions: Examine management’s basis for the going concern statement, including funding plans, investor support from Valentis Group Ltd (majority shareholder), and operational turnaround strategies.
• Intangible asset valuation: Assess the rationale and indicators behind the amortisation charge, ensuring that capitalised development costs reflect recoverable value.