BORDERS WEBSITES LTD

Executive Summary

Borders Websites Ltd is a financially stable micro-entity with a growing asset base and strong liquidity, supported by a single experienced director. The company’s balance sheet and working capital position indicate a solid ability to meet short-term obligations and modest credit facilities are appropriate. Ongoing monitoring should focus on maintaining liquidity and operational growth in the software development sector.

BORDERS WEBSITES LTD - Analysis Report

Company Number: SC658974

Analysis Date: 2025-07-20 13:40 UTC

1. Credit Opinion: APPROVE
   Borders Websites Ltd demonstrates a solid financial position for a micro-entity with consistent growth in net assets and working capital. The company shows no signs of financial distress, maintains positive net current assets, and has no overdue filings. The single director’s stable tenure and the absence of negative director conduct enhance confidence. Given the limited scale, credit facilities should be modest and monitored, but overall the company can service short-term obligations reliably.

2. Financial Strength:
   The balance sheet shows progressive strengthening over the last four years. Net assets increased from £3,553 in 2021 to £15,217 in 2024, reflecting retained earnings and growth. Current assets nearly doubled in the last year from £10,198 to £20,991, outpacing current liabilities which rose modestly to £5,774. Fixed assets are minimal, appropriate for a software development business relying on intellectual property and services. Shareholders’ funds fully support the asset base, indicating no reliance on external long-term debt.

3. Cash Flow Assessment:
   Working capital is healthy at £15,217, providing ample liquidity for operational needs. The company’s current ratio (~3.6x in 2024) is strong for a micro business, minimizing liquidity risk. The low level of current liabilities suggests limited short-term obligations. While no detailed cash flow statement is available, the increase in current assets and equity implies positive cash generation or capital injection. The single-employee structure limits overheads, supporting stable cash flow.

4. Monitoring Points:

• Continued growth in net current assets and net assets to confirm financial trajectory.
• Management of current liabilities relative to current assets to avoid liquidity squeeze.
• Business diversification and client base development in the software sector to mitigate sector risks.
• Maintain timely filing of accounts and confirmation statements to avoid regulatory issues.
• Observe any changes in director or ownership structure that may impact governance or credit risk.