Company Number: 13660449

Analysis Date: 2025-07-20 17:58 UTC

1. Credit Opinion: CONDITIONAL APPROVAL
   Cybi Technologies Limited is a small private limited company operating in IT consultancy. The company has a very modest asset base and a small net asset position (£123 as of 31 March 2024), with net current liabilities of £1,548. The company is currently trading but shows weak liquidity and working capital deficits. The directors have provided an interest-free loan to support cash flow, indicating reliance on related party funding. Given these factors, credit approval should be conditional, requiring ongoing monitoring of cash flows and prompt repayment of liabilities. The company’s ability to service new credit facilities depends heavily on improved cash generation or additional equity injection.

2. Financial Strength:

• Fixed assets are minimal (£2,116) and mostly office equipment, depreciated on a reducing balance basis.
• Current assets stand at £20,324, primarily debtors (£19,296), suggesting sales on credit terms, but cash on hand is low (£1,028), which is a concern for immediate liquidity.
• Current liabilities of £21,872 exceed current assets, creating a negative working capital position.
• Net assets are barely positive at £123, down from £549 the previous year, reflecting a decline in retained earnings (profit & loss reserve decreased from £449 to £23).
• Deferred tax provision (£445) marginally reduces net assets but is not a cash outflow.
  Overall, the balance sheet is weak with minimal net worth and negative working capital, indicating limited financial strength.

3. Cash Flow Assessment:

• Cash balances have decreased significantly from £3,700 in 2023 to £1,028 in 2024, signalling stretched liquidity.
• Debtors increased substantially, which may reflect slower collections or increased sales on credit.
• Current liabilities, dominated by corporation tax payable (£19,851), have increased, exacerbating short-term funding pressure.
• Reliance on director loans (£6,227) to support working capital suggests cash flow constraints.
• No long-term debt is reported, so principal repayments are not an immediate burden.
  In sum, cash flow is tight with negative net working capital and low cash reserves, raising concerns about the company’s ability to meet short-term obligations without additional funding or improved collections.

4. Monitoring Points:

• Track monthly cash flow and cash balances to ensure liquidity does not deteriorate further.
• Monitor debtor days and the ageing profile of receivables to detect collection issues early.
• Watch corporation tax payments and confirm they are being met timely to avoid penalties.
• Review any director loans or related party funding for sustainability and repayment plans.
• Assess profitability trends in future accounts to confirm if operational improvements are occurring, as current profit reserves are low.
• Ensure timely filing of accounts and confirmation statements to maintain compliance and transparency.