Company Number: 13081681

Analysis Date: 2025-07-29 19:52 UTC

1. Risk Rating: HIGH
   The company’s latest filed accounts show significant net current liabilities and negative net assets, indicating financial distress. This points to a high solvency risk and suggests the company may struggle to meet its short-term obligations.

2. Key Concerns:

• Negative Net Current Assets/Liabilities: The balance sheet for 2023 reports current liabilities of £110,865 with net current liabilities of the same amount, showing a worsening liquidity position compared to prior years.
• Declining Net Assets: Net assets have moved from positive £60,000 at inception (2020) to negative £110,865 at the end of 2023, signaling erosion of shareholders’ funds and potential insolvency risk.
• Single Director/Secretary and Control Concentration: Xxxxxx Xxxxxxxxname shown to subscribers holds full control and occupies multiple roles, which could raise governance and operational continuity concerns.

3. Positive Indicators:

• Regular Filing Compliance: The company is up to date with accounts and confirmation statement filings, indicating regulatory compliance and good administrative discipline.
• Micro-entity Status: Operating as a micro-entity reduces complexity and filing burden, suitable for a small business.
• No Indication of Insolvency Procedures: The company is active, not in liquidation or administration, suggesting no formal insolvency has been initiated yet.

4. Due Diligence Notes:

• Review Detailed Financial Statements: Obtain and analyze full accounts beyond the summary to understand the nature of liabilities and cash flow dynamics.
• Investigate Reasons for Increasing Liabilities: Determine whether liabilities are trade creditors, loans, or other obligations and assess repayment terms.
• Assess Business Model Viability: Understand revenue streams and operational plans to evaluate prospects for returning to positive net assets.
• Confirm Director Background and Capacity: Verify the capacity of the sole controlling director to manage and grow the business sustainably, including any potential conflicts of interest.
• Examine Recent Name Change Impact: The company changed name from TAPTOP FINTECH LTD in late 2023; assess if this reflects a strategic shift or restructure.