Company Number: 13162730

Analysis Date: 2025-07-20 17:08 UTC

1. Credit Opinion: APPROVE
   Addepar UK Ltd demonstrates a stable and growing financial position with a clear cost-plus business model supporting its US parent company. The company shows increasing turnover and positive net assets over recent years, with no evidence of cash flow or profitability issues. Directors have provided assurance on going concern, and audit reports indicate no material uncertainties. The credit risk is mitigated by the company’s function as a service provider with predictable income and a strong parent linkage.

2. Financial Strength:
   The company’s financial strength is solid for its medium account size category. Turnover increased substantially from £12.6M in 2022 to £20.2M in 2024, reflecting business growth. Net assets improved from £891k in 2023 to £1.68M in 2024, showing enhanced equity and retained earnings. Current assets have increased, particularly debtors and cash balances, while current liabilities have risen but remain well covered by current assets, maintaining healthy net current assets of £1.37M. The balance sheet shows a positive trajectory with a growing shareholder fund, indicating sound capital structure.

3. Cash Flow Assessment:
   Liquidity appears adequate with cash holdings rising from £139k in 2023 to £385k in 2024. Debtors are significant but matched by current liabilities, ensuring working capital remains positive (£1.37M in 2024). The company operates on a cost-plus basis invoicing the parent company monthly, which provides predictable cash inflows and limits credit risk. No issues related to overdue liabilities or liquidity constraints are reported. Overall, the company’s working capital management and cash flow profile support its debt servicing capability.

4. Monitoring Points:

• Continued monitoring of debtor days and collection efficiency given the large debtor balances relative to cash.
• Watch for any changes to the cost-plus model or parent company relationship that could impact revenue predictability.
• Staff cost growth relative to turnover to ensure sustainable margins and cash flow.
• Maintain oversight on current liabilities growth to prevent working capital strain.
• Monitor any changes in director appointments or governance that might affect financial stewardship.