APPDOM LTD

Executive Summary

APPDOM LTD is a small but growing IT services company showing improving net assets and strong working capital. The company has maintained timely statutory filings and exhibits sound financial stewardship under a single director. Credit approval is recommended with ongoing monitoring of liquidity and operational performance.

APPDOM LTD - Analysis Report

Company Number: 13175171

Analysis Date: 2025-07-19 12:34 UTC

1. Credit Opinion: APPROVE
   APPDOM LTD demonstrates a positive trajectory in net assets and working capital over the last three years, indicating improving financial stability. The company is active, filing accounts and returns on time, and operates within the micro-entity category, limiting complexity and risk. The sole director appears to maintain proper governance, and there are no indications of financial distress or overdue liabilities. Given its modest but growing net asset base and positive working capital, the company should be capable of servicing modest credit facilities.

2. Financial Strength:
   The balance sheet shows steady growth in net assets from £561 in 2021 to £4,278 in 2024. Fixed assets are minimal but stable, reflecting a service-oriented IT business. Current assets have grown from £14,328 to £14,234 (slight dip last year but still strong), while current liabilities remain stable around £10,000. The net current assets increased significantly from £396 in 2021 to £3,850 in 2024, indicating improved liquidity and working capital management. No long-term liabilities or provisions are reported, reducing financial risk.

3. Cash Flow Assessment:
   Current assets predominantly consist of cash or receivables sufficient to cover current liabilities comfortably, as shown by positive net current assets. The company’s working capital position suggests it can meet short-term obligations without strain. The micro entity’s single employee structure implies low overheads, supporting cash conservation. However, detailed cash flow statements are not provided; thus, assumptions on operational cash flow are made based on balance sheet trends.

4. Monitoring Points:

• Continued monitoring of working capital to ensure liquidity remains positive as the company grows.
• Watch for any increase in current liabilities or introduction of long-term debt that could stress cash flow.
• Review of turnover and profitability when available to confirm sustainable cash generation.
• Keep an eye on director appointments and any changes in governance or ownership control.
• Monitor timely filing of accounts and compliance to avoid regulatory risk.