XENOS SYSTEMS LTD

Executive Summary

XENOS SYSTEMS LTD is a very recently established micro-entity with minimal financial resources and limited operational scale, presenting a high risk from a solvency and liquidity perspective. While the company is compliant with filing obligations and active in a potentially scalable sector, its current financial position and lack of operational history raise significant concerns about sustainability. Further detailed due diligence on cash flow, management plans, and contingent liabilities is recommended before considering investment.

XENOS SYSTEMS LTD - Analysis Report

Company Number: 14252989

Analysis Date: 2025-07-29 13:44 UTC

1. Risk Rating: HIGH
   Justification: The company, XENOS SYSTEMS LTD, is a recently incorporated micro-entity with minimal assets (£341 net assets as of 31 March 2024) and no fixed assets. It had negligible turnover (£600 in the 2023 financial year) and very limited current assets (£1,712) barely exceeding current liabilities (£1,371), indicating a very thin liquidity buffer. The absence of any significant financial history or operational scale raises concerns about its ability to meet obligations and sustain operations.

2. Key Concerns:

• Very limited financial resources with net assets of only £341 and negligible turnover, which suggests potential insolvency risk if demands on liquidity increase.
• Lack of fixed assets or meaningful current assets beyond a small cash or receivables balance, indicating limited operational capacity or collateral.
• The company is very young (incorporated mid-2022) with only one employee and no evidence of growth or profitability, which questions the business sustainability.

3. Positive Indicators:

• Accounts and confirmation statements are filed on time with no overdue filings, indicating compliance with regulatory requirements.
• The company is active and not in liquidation or administration, with directors acknowledging responsibility for statutory compliance.
• Operating within an IT service sector (SIC 62090), which can be scalable and may have growth potential if capitalized properly.

4. Due Diligence Notes:

• Investigate the source and nature of current assets (£1,712) to assess liquidity quality and cash flow status.
• Review directors’ plans for capital infusion or revenue growth to assess operational viability beyond micro-entity scale.
• Confirm absence of contingent liabilities or off-balance sheet risks not reflected in the micro-entity accounts.
• Consider background checks on the director and management team for experience and potential red flags given the small scale of the business.