CRONO SAAS LTD

Executive Summary

CRONO SAAS LTD demonstrates improving financial strength with strong liquidity and an expanding asset base, supported by shareholder injections and capitalised development costs. While currently loss-making, the company’s cash position and working capital provide a solid buffer. Credit approval is recommended with ongoing monitoring of profitability and cash flow management to support sustainable growth and debt servicing.

CRONO SAAS LTD - Analysis Report

Company Number: 14261927

Analysis Date: 2025-07-29 20:58 UTC

Credit Opinion:
APPROVE with conditions. CRONO SAAS LTD is an early-stage technology company engaged in software development with a growing asset base and strong liquidity. The company shows improving net assets and working capital, supported by substantial cash holdings. However, the company is still in a development phase, evidenced by a significant negative retained earnings balance. Approval is recommended with monitoring of profitability trends and cash burn rates to ensure ongoing debt servicing capacity.

Financial Strength:
The balance sheet strength is solid for a company incorporated in 2022. Total assets increased significantly from £175k in 2023 to £424k in 2024, driven by the recognition of £151k in intangible assets (capitalised development costs) and increased cash balances. Net current assets improved to £263k, indicating ample short-term financial flexibility. Shareholders’ funds rose from £175k to £424k, reflecting capital injections (including £449k advanced subscription money) and reinvested earnings despite accumulated losses of £376k. Fixed and intangible assets are modest but appropriate for a software firm.

Cash Flow Assessment:
Liquidity is strong with cash at bank increasing from £164k to £234k, and current liabilities declining from £7.7k to £3.5k. The company maintains a favorable current ratio (>75x) and a net current asset position providing a comfortable buffer against short-term obligations. Although the company is loss-making, cash flow appears sufficient to meet operational and creditor demands currently. The advanced subscription money also provides potential capital inflows to support working capital if shares are issued.

Monitoring Points:

• Track progression from accumulated losses towards profitability to ensure long-term sustainability and debt repayment capability.
• Monitor cash burn rate relative to cash reserves to avoid liquidity strain.
• Watch for timely issuance and conversion of advanced subscription money into share capital, improving equity base.
• Review management’s ability to capitalize successfully on intangible assets and R&D to generate revenue growth.
• Observe any changes in creditor levels or delayed payments signaling cash flow stress.