AGILE APPLICATIONS LIMITED
Company number 07443094 · 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.
CREDIT ANALYSIS REPORT: AGILE APPLICATIONS LIMITED
1. CREDIT OPINION: DECLINE
Reasoning: This company presents unacceptable credit risk on a standalone basis. The entity is technically insolvent with net liabilities of £1.19M and net current liabilities of £1.59M. The company can only continue trading through the ongoing financial support of its parent, Agile Applications Group Limited. Without a parent company guarantee, any credit exposure would be imprudent given the severely deteriorated balance sheet and inability to service obligations from own resources.
2. FINANCIAL STRENGTH: CRITICAL WEAKNESS
Balance Sheet Deterioration – Severe and Accelerating:
| Year | Net Assets | Shareholders' Funds | Trend |
|---|---|---|---|
| 2021 | +£923,122 | +£923,122 | Positive |
| 2022 | +£160,443 | +£360,599 | Declining |
| 2023 | -£750,281 | -£750,281 | Negative |
| 2024 | -£1,186,187 | -£1,596,440 | Deepening |
The trajectory is alarming. Net assets have swung from a surplus of £923k in 2021 to a deficit of £1.19M in just three years – a deterioration of over £2.1M. Shareholders' funds now show accumulated losses of £1.6M against called-up share capital of just £360k.
Key Balance Sheet Concerns: - Insolvency: Both net assets and net current assets are negative. The company cannot meet its debts as they fall due from its own resources. - Intangible Asset Concentration: Fixed assets of £400k are predominantly intangible (development costs £390k). These are illiquid and of uncertain realisable value in a distress scenario. - Minimal Tangible Asset Backing: Only £10k in tangible assets against £3M in current liabilities – effectively no collateral for lenders.
3. CASH FLOW ASSESSMENT: INADEQUATE
Liquidity Position – Critically Weak:
| Metric | 2024 | 2023 |
|---|---|---|
| Cash | £86,822 | £93,582 |
| Current Liabilities | £3,042,715 | £2,009,002 |
| Net Current Liabilities | (£1,586,953) | (£720,799) |
| Current Ratio | 0.48:1 | 0.64:1 |
Working Capital Deficit: The company has negative working capital of £1.59M, meaning current liabilities exceed current assets by a substantial margin. This has worsened significantly from £721k in 2023.
Cash Coverage: Cash of £87k represents just 2.8% of current liabilities. The company has no meaningful liquidity buffer.
Group Intercompany Dependency – The Critical Factor:
| Intercompany Position | 2024 | 2023 |
|---|---|---|
| Owed by group undertakings | £839,789 | £759,835 |
| Owed to group undertakings | £2,179,767 | £503,893 |
| Net group position | (£1,340,000) | £255,942 |
The intercompany balance owed to group undertakings has exploded from £504k to £2.18M – a fourfold increase. This indicates the parent is funding ongoing operating losses. The going concern note explicitly states reliance on "ongoing support of group companies." This is a material uncertainty.
Trade Debtors: £95k in trade debtors suggests modest revenue levels, consistent with a small software development operation.
4. MONITORING POINTS
If credit is extended subject to a parent company guarantee, the following should be monitored:
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Parent Company Creditworthiness: Obtain and review audited accounts of Agile Applications Group Limited. The entire credit decision rests on the parent's ability and willingness to support this subsidiary.
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Intercompany Loan Terms: Clarify whether the £2.18M owed to group undertakings is repayable on demand. If so, this creates an immediate insolvency risk if support is withdrawn.
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Trading Performance: The accounts are filleted (no P&L delivered), obscuring the operating loss. Request management accounts to understand revenue trajectory and monthly cash burn rate.
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Development Cost Capitalisation: £390k in capitalised development costs represents significant judgement. Monitor for potential impairment if products fail to generate expected returns.
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Director Changes: Tim Darbyshire resigned as director on 31 December 2025. Clarify management continuity and strategic direction.
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Accumulated Losses: Retained earnings deficit grew by £436k in the year (from £1.16M to £1.60M). Monitor whether losses are narrowing or accelerating.
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Creditor Payment Days: Trade creditors of £56k against likely modest revenue suggests the company may be paying trade suppliers promptly (or trade creditors are minimal). Request trade references.
ADDITIONAL OBSERVATIONS
Group Structure Risk: As a wholly-owned subsidiary (>75% shareholding by Agile Applications Group Limited), this entity has no independent ability to raise finance or restructure without parent approval. The parent could choose to withdraw support at any point, triggering immediate insolvency.
Historical Context: The company traded as Swift Datapro Software Limited until 2016, suggesting a business transformation under group ownership. The goodwill from the 2010 acquisition has been fully amortised, indicating the original business value has been consumed.
Employee Reduction: Headcount dropped from 23 to 21, suggesting ongoing cost management but also potential capability constraints.