Company Number: 14457624

Analysis Date: 2025-07-20 18:26 UTC

1. Risk Rating: LOW to MEDIUM
   The company shows a positive net asset position with growing shareholders' funds and no overdue statutory filings. However, the significant reduction in current assets and cash from 2023 to 2024, alongside reliance on group-related debtors and creditors, warrants monitoring.

2. Key Concerns:

• Decline in Current Assets and Cash: Current assets dropped sharply from £1,038,763 in 2023 to £168,387 in 2024; cash similarly fell from £128,920 to £16,064, which could impact liquidity.
• High Dependence on Group Transactions: Large amounts owed by and to group undertakings in prior year suggest intercompany funding reliance, which may affect operational independence and risk profile.
• Limited Financial Disclosure: As a small company filing under exemption, no profit and loss or cash flow statements are provided, restricting insight into operational performance and cash generation.

3. Positive Indicators:

• Net Current Assets and Net Assets Growth: Net current assets improved from £58,719 to £104,286, indicating working capital is currently positive and strengthening.
• Up-to-date Compliance: No overdue accounts or confirmation statements, indicating good governance and regulatory compliance.
• Stable Share Capital: Consistent share capital and increasing retained earnings suggest shareholder backing and accumulation of reserves.

4. Due Diligence Notes:

• Review detailed profit and loss figures and cash flow information if available from group accounts or management to assess operational profitability and cash conversion.
• Investigate the nature and terms of intercompany balances to understand risks of related-party exposures and potential liquidity constraints.
• Assess management strategy for addressing the sharp reduction in cash and current assets during 2024 and whether this is cyclical or structural.
• Confirm no director disqualifications or governance issues given recent director changes in 2024.
• Evaluate market position and business model sustainability given the company operates in software development, a sector with rapid changes and competition.