Company Number: 12460398

Analysis Date: 2025-07-20 12:13 UTC

1. Credit Opinion: CONDITIONAL APPROVAL
   Datawise Solutions Ltd shows a marked improvement in financial position in the latest financial year with positive shareholders' funds and a strong increase in current assets. However, the company has a short operating history since incorporation in 2020 and exhibited consistent negative equity from 2021 through 2024. The turnaround to positive equity in 2025 is encouraging but requires monitoring. Credit approval is conditional on continued positive cash flow and maintenance of current asset levels to cover liabilities.

2. Financial Strength:

• Shareholders' funds improved from a negative £36,680 in 2024 to a positive £51,349 in 2025, indicating recapitalization or accumulated profits.
• Fixed assets increased modestly to £4,521 but remain a small part of the asset base.
• Total assets increased substantially to £116,924 in 2025 from £38,777 in 2024, mainly driven by current assets rising to £112,403.
• Current liabilities fell from £57,602 in 2024 to £30,231 due within one year, improving working capital dynamics.
• Creditors payable after one year remain at £34,470, suggesting some longer-term liabilities to watch.

3. Cash Flow Assessment:

• Net current assets (working capital) improved significantly to approximately £82,172 (£112,403 current assets minus £30,231 current liabilities).
• The improvement in liquidity suggests the company has strengthened its ability to meet short-term obligations.
• However, given the micro-entity size and limited operating history, cash flow volatility risk remains.
• The company employs one person, indicating a very lean operation which may limit fixed overheads.

4. Monitoring Points:

• Maintain close watch on liquidity ratios and cash flow to ensure current assets remain sufficient to cover current liabilities, especially given prior periods of negative equity.
• Monitor creditor payment terms and any increase in long-term liabilities to evaluate impact on solvency.
• Review any reliance on director loans or related party transactions not disclosed here that could affect financial stability.
• Track revenue growth and profitability to confirm sustainable turnaround beyond the latest reporting period.
• Confirm timely filings continue and no adverse changes in director status or company registration.