BACKLOG ACCELERATION LTD

Executive Summary

BACKLOG ACCELERATION LTD shows a positive financial trajectory with improved net assets and strong working capital, indicating good short-term payment capacity. As a micro-entity in a dynamic sector, it is creditworthy for modest facilities but merits ongoing monitoring to confirm stability and growth. Overall, the company presents low risk for credit extension at this stage.

BACKLOG ACCELERATION LTD - Analysis Report

Company Number: SC689797

Analysis Date: 2025-07-29 15:44 UTC

1. Credit Opinion: APPROVE with monitoring. BACKLOG ACCELERATION LTD demonstrates improving financial strength and positive working capital growth, indicating capability to meet short-term obligations. The company operates in a growing technology sector (software development) and has no overdue filings or director concerns. However, as a micro-entity with a small asset base and limited financial history (incorporated 2021), ongoing monitoring is advised to confirm sustained cash flow and profitability.

2. Financial Strength: The balance sheet shows net assets increasing from £10,899 in 2023 to £30,399 in 2024, reflecting retained earnings or capital injection. Current assets more than doubled year on year from £35,548 to £70,018, while current liabilities increased moderately from £24,649 to £39,619. The net current asset position of £30,399 provides a comfortable liquidity buffer. Share capital remains nominal at £100, typical for a micro private limited company.

3. Cash Flow Assessment: Although detailed cash flow statements are unavailable, the doubling of current assets alongside a controlled rise in current liabilities indicates improved liquidity. The company maintains positive net working capital and has stable staffing (3 employees), suggesting manageable operating costs. No evidence of payables or receivables stress is apparent. Cash flow appears sufficient to service short-term operational needs and potential credit facilities.

4. Monitoring Points:

• Continue to track net current assets and liquidity to ensure cash flow sustains business growth.
• Monitor turnover and profitability trends once available to confirm business viability.
• Watch for any changes in director appointments or overdue filings as indicators of governance risk.
• Assess impact of market conditions on software development demand and the company’s ability to scale.