APPADIEM LTD

Executive Summary

Appadiem Ltd is a financially stable micro-entity operating in software development, with improving net current assets and a solid equity base. Its liquidity position is strong, supported by prudent working capital management and director funding. The company is creditworthy for typical small-scale credit facilities, though monitoring director loan balances and revenue trends is advisable.

APPADIEM LTD - Analysis Report

Company Number: 12491061

Analysis Date: 2025-07-29 17:43 UTC

1. Credit Opinion: APPROVE

Appadiem Ltd demonstrates strong financial stability for a micro-entity in the software development sector. Its net current assets have grown significantly year-on-year, indicating effective working capital management and the ability to meet short-term liabilities. There is no indication of financial distress or adverse director conduct. The company’s sole director appears to provide ongoing support, evidenced by director advances. Given the healthy balance sheet and absence of overdue filings, the company is creditworthy for typical lending or trade credit facilities at this size.

2. Financial Strength:

The company’s balance sheet at 31 March 2024 shows total assets less current liabilities of £74,890, up from £49,860 the previous year. Fixed assets are minimal (£2,297), appropriate for a software development business. Current assets have increased to £95,523, while current liabilities have decreased slightly to £22,930, resulting in a strong net current asset position of £72,593. Shareholders’ funds have also increased to £74,890, indicating retained earnings or capital injections. Overall, the company has a solid equity base relative to its size and no external borrowings reported.

3. Cash Flow Assessment:

The company’s liquidity position is robust, with current assets primarily comprising cash or cash equivalents, given the business nature and no inventory reported. Net working capital is positive and growing, suggesting good cash management and the ability to cover short-term obligations comfortably. The director’s loan account shows an advance of £8,373, reflecting some reliance on director funding, but this does not appear excessive or problematic. The company employs only one person, keeping overheads low and preserving cash flow.

4. Monitoring Points:

• Director Loan Account: Monitor whether the director’s advances increase substantially or remain outstanding for extended periods without repayment, as this could indicate cash flow dependency.
• Revenue Trends: Although not provided here, monitoring sales growth and profitability will be important to ensure ongoing viability and ability to service credit.
• Filing Compliance: Maintain timely accounts and confirmation statement filings to avoid compliance risks.
• Business Concentration: As a micro business, assess any customer or supplier concentration risks periodically.