SERIWAY TECHNOLOGY LTD
Company number 08704364 · Monitor this company
This analysis was written by an AI from the company's public filings. It may contain errors or omissions and is not financial or professional advice.
1. Risk Rating: HIGH
Justification: The company’s most recent balance sheet shows net liabilities of £787 and creditors of £818 against negligible fixed assets (£31). This indicates technical insolvency on a balance sheet basis. Negative shareholders’ funds have persisted since at least 2024, and the trend of rising liabilities without corresponding asset growth points to a deteriorating financial position.
2. Key Concerns
- Balance Sheet Insolvency: Net assets are negative (£-787 in 2025, £-601 in 2024), meaning the company’s liabilities exceed its assets. This is a statutory ground for insolvency proceedings if not addressed.
- Rising Creditor Pressure: Amounts due within one year have increased from £293 (2022) to £818 (2025), a 179% rise over three years, with no visible increase in assets or revenue. This suggests growing reliance on external funding or deferred payments.
- Absence of Revenue or Operating Activity: The latest accounts show zero employees and no turnover disclosure. The micro-entity filing does not include a profit and loss account, but the persistent negative equity and lack of staff imply the company may be non-trading or generating insufficient income to cover costs.
3. Positive Indicators
- Timely Filing: Both accounts and confirmation statement are up to date, with no overdue filings.
- No Regulatory Red Flags: No disqualification records, the company is active, and there is no indication of administration or liquidation.
- Simple Structure: Single director and PSC (name shown to subscribers) provides clarity on control, and the company has no complex ownership or debt structure.
4. Due Diligence Notes
- Nature of Liabilities: Investigate whether the £818 creditors (2025) are trade payables, director loans, or accruals. If owed to the director, the solvency risk may be manageable; if to third parties, pressure could be higher.
- Director Support: Determine if name shown to subscribers provides ongoing financial support (e.g., subordinated loans or waivers). The resigned director (name shown to subscribers, 2026) may have implications for governance continuity.
- Business Activity: Clarify the company’s current trading status. With zero employees and minimal fixed assets, confirm whether it still provides IT consultancy services or is effectively dormant.
- Future Viability: Request management accounts and a cash flow forecast. The negative equity trend and rising creditors suggest the company may require a capital injection or debt restructuring to continue as a going concern.