ALGLIB LTD

Executive Summary

Alglib Ltd is a newly incorporated micro-entity engaged in software development with a stable and improving balance sheet and adequate liquidity. The company shows good governance with no overdue filings and a clear ownership structure. Approval for credit is recommended with regular monitoring of liquidity and operational cash flows.

ALGLIB LTD - Analysis Report

Company Number: 14029754

Analysis Date: 2025-07-20 17:09 UTC

1. Credit Opinion: APPROVE. Alglib Ltd demonstrates a sound financial position for a micro-entity with positive net assets and increasing shareholder equity year-on-year. The company has no overdue filings, indicating good compliance and governance. Although it has no employees and limited current assets, the low current liabilities and net current assets position suggest it can meet short-term obligations. Given its recent incorporation in 2022 and steady growth in net assets, the risk profile is moderate but acceptable for credit extension with standard monitoring.

2. Financial Strength: The balance sheet shows net assets increased from £5,267 in FY 2023 to £9,770 in FY 2024, nearly doubling equity in one year. Current assets have grown modestly from £15,070 to £17,035, while current liabilities decreased from £9,021 to £6,375, improving net working capital to £10,660. The company holds minimal fixed assets or long-term liabilities, consistent with its micro classification and software development business model. Overall, the financial strength is stable with no signs of distress.

3. Cash Flow Assessment: Liquidity appears adequate with net current assets of £10,660, indicating sufficient working capital to cover short-term debts of £6,375. The absence of employees suggests minimal payroll obligations, reducing cash burn risk. However, no explicit profit and loss data is provided, limiting full cash flow visibility. The company’s ability to generate cash internally is presumed acceptable given equity growth, but ongoing monitoring of cash inflows from operations is recommended for credit risk mitigation.

4. Monitoring Points:

• Continued growth in net assets and maintenance or improvement of liquidity ratios.
• Timely filing of future accounts and confirmation statements to ensure governance compliance.
• Monitoring any increase in current liabilities that could strain working capital.
• Development of profit and loss data when available to assess operational cash generation.
• Watch for any changes in ownership or director status, especially given single director and PSC concentration.