CREDIT ASSESSMENT: MEMSET LTD

1. Credit Opinion: DECLINE

Reasoning: This entity presents no viable basis for credit extension. The company is classified as a non-trading entity (SIC 74990) with £1 in total assets, zero employees, and no discernible revenue-generating operations. The balance sheet is essentially dormant, and there is no cash flow capacity to service any debt obligation. While the website suggests active hosting operations, the filed accounts and SIC classification confirm this is a shell vehicle, not an operating business.

2. Financial Strength

Assessment: Negligible

Key Observations: - The balance sheet shows a nominal £1 position in both years, indicating this is effectively a dormant or non-trading entity - Share capital of £443,032 exists but is not reflected in the asset base, suggesting historical capital has been distributed or transferred out - The discrepancy between share capital and net assets warrants investigation—likely indicates accumulated losses or capital reductions have eroded the position - No fixed assets, no current assets of substance, and no liabilities reported - Micro-entity filing provides minimal transparency; no P&L, cash flow, or detailed notes available

Balance Sheet Health: Fundamentally weak. The entity has no tangible financial substance.

3. Cash Flow Assessment

Assessment: Non-existent

• Zero employees: No operational payroll, confirming absence of trading activity
• No revenue indicators: Micro-entity accounts don't require turnover disclosure, but the £1 asset position and non-trading SIC code confirm no meaningful revenue
• No working capital: Net current assets of £1 provide zero liquidity buffer
• No debt service capacity: Without cash generation, any borrowing would be entirely speculative

Liquidity Position: The company has no operational cash flows and cannot support debt service obligations.

4. Monitoring Points

Should any future credit consideration arise, the following would require scrutiny:

1. Related Party Transactions: Iomart Group Plc holds 75%+ voting rights and director appointment power. Any intercompany obligations or guarantees would need full disclosure to assess true liabilities.

2. Subsidiary Status: This appears to be a subsidiary within the Iomart Group. Credit assessment should be directed to the parent entity (Iomart Group Plc) if group guarantees are contemplated.

3. Historical Asset Stripping: The gap between £443k share capital and £1 net assets suggests significant value has been extracted. Understanding the timeline and rationale for this erosion is critical.

4. Website vs. Filing Discrepancy: The website (memset.net) describes active hosting operations with data centres and technical support. This contradicts the non-trading classification. Clarification needed on whether trading has ceased or been transferred to another group entity.

5. Director Resignations: Two officers (Xxxxxx Xxxxxxxxname shown to subscribers, Secretary; Xxxxxx Xxxxxxxxname shown to subscribers, Director) resigned in June 2026. This may signal further winding down of the entity.

6. Future Filing Compliance: Monitor that accounts continue to be filed on time, though the entity poses minimal credit risk regardless.

Additional Context

The ownership structure reveals: - Iomart Group Plc: Controls 75%+ voting rights, right to appoint/remove directors - Xxxxxx Xxxxxxxxname shown to subscribers: 25-50% share ownership - Xxxxxx Xxxxxxxxname shown to subscribers: 25-50% share ownership

This structure confirms Memset Ltd operates as a subsidiary of Iomart Group. Any meaningful credit exposure would need to be assessed at the Iomart Group Plc level with appropriate parent company guarantees.

Names of the people mentioned are shown to subscribers. See subscription