AKAROA TECH LIMITED

Executive Summary

Akaroa Tech Limited is a financially stable micro-entity with growing net assets and strong liquidity, supporting its ability to meet short-term obligations. The company has demonstrated sound financial stewardship and compliance, making it suitable for credit approval with routine monitoring of working capital and compliance. No immediate credit concerns are identified based on the latest financial data.

AKAROA TECH LIMITED - Analysis Report

Company Number: 12805274

Analysis Date: 2025-07-19 12:40 UTC

1. Credit Opinion: APPROVE
   Akaroa Tech Limited demonstrates a positive and improving financial position with net assets increasing from £45,535 in 2023 to £58,011 in 2024. The company maintains a healthy level of net current assets (£56,689) indicating sufficient short-term liquidity to meet obligations. The absence of overdue filings and recent accounts prepared under micro-entity provisions indicate regulatory compliance and financial discipline. Given its small size and stable financial trajectory, the company is deemed creditworthy for typical SME credit facilities.

2. Financial Strength:
   The balance sheet shows a micro-entity with modest fixed assets (£1,322) and a strong current asset base (£286,604) primarily supporting working capital. Current liabilities (£229,915) are well covered by current assets, yielding a positive net current asset position. Shareholders' funds have increased steadily since incorporation, reflecting retained earnings or capital injections. The company exhibits a solid equity buffer relative to liabilities, which supports financial resilience.

3. Cash Flow Assessment:
   The company’s net current assets position confirms adequate liquidity to cover short-term liabilities. While exact cash flow statements are not available, the growing current assets and net assets suggest positive operational cash flows or effective working capital management. The average employee count of 3 indicates a lean cost structure, which is beneficial for cash preservation. No signs of liquidity stress or over-reliance on short-term debt are evident.

4. Monitoring Points:

• Continue to monitor net current assets trends to ensure liquidity remains sufficient as the business grows.
• Watch for any significant increases in current liabilities that could pressure working capital.
• Confirm that the company maintains timely filings and compliance, mitigating regulatory risks.
• Keep an eye on revenue growth and profitability metrics when available, to assess ongoing business viability.