AGILEBITS UK LIMITED

Executive Summary

AgileBits UK Limited shows a strengthening financial position with increased net assets and positive profitability supported by intercompany funding and a parent company letter of support. The company demonstrates adequate liquidity and no external debt, making it a suitable candidate for credit approval with conditions related to monitoring intercompany balances and parent support. Continued oversight of working capital management and underlying group financial health is advised.

AGILEBITS UK LIMITED - Analysis Report

Company Number: 12665410

Analysis Date: 2025-07-20 17:16 UTC

1. Credit Opinion:
APPROVE with conditions. AgileBits UK Limited is an active private limited company categorized as small, exhibiting solid growth and improved financial position as per the 2023 accounts. The company benefits from a letter of financial support from its immediate parent, AgileBits Inc, which significantly mitigates credit risk. However, working capital management shows some volatility, and the company relies on intercompany balances, so credit should be extended cautiously with regular monitoring.

2. Financial Strength:
The balance sheet shows a marked improvement from 2022 to 2023 with net assets increasing from approximately $535k to $954k (approx. £770k at current exchange rates). Fixed assets stand at $112,886 (approx. £91k), mainly computer equipment, indicating capital investment in operational infrastructure. The company has negligible bank borrowings and modest trade creditors, with a sizeable amount owed by group undertakings ($1.2M), reflecting strong intra-group financial support. The capital contribution reserve has increased, reflecting additional equity or intercompany injections. Retained earnings turned positive in 2023, demonstrating profitability and improved equity base.

3. Cash Flow Assessment:
Current assets at year-end are $1.7M, with cash at bank $163,883, versus current liabilities of $843k, resulting in a positive net current asset position of $870k. This is a significant improvement over 2022 which showed net current assets of $422k. Debtors are primarily amounts owed by group companies, which can be less liquid than external receivables, so liquidity depends on intercompany cash flow arrangements. The company has no significant external debt, reducing pressure on cash flows. Overall liquidity appears adequate, but continued close review of debtor collection and intercompany funding is prudent.

4. Monitoring Points:

• Continued profitability and positive retained earnings trajectory.
• Stability and collectability of amounts owed by group undertakings to ensure liquidity.
• Changes to the letter of support or financial health of the parent company AgileBits Inc.
• Working capital trends, especially current liabilities growth relative to current assets.
• Any material changes in fixed asset investments or significant capital expenditure.
• Directors’ conduct and ownership structure remain stable, which supports consistent management.