Company Number: SC651418

Analysis Date: 2025-07-20 16:40 UTC

1. Credit Opinion: APPROVE - Likezero Limited demonstrates a strong financial position with significant net assets and positive working capital. The company is active, well capitalised, and maintains strong cash balances, indicating a solid ability to meet debt obligations. The business operates in a resilient market niche (data processing and contract analysis software for financial services) with a clear strategic outlook and risk management policies. The directors have shown prudent financial stewardship and have managed COVID-19-related risks effectively. While the company is relatively young (incorporated 2020), its audited accounts reveal no material uncertainties about going concern. Overall, the risk profile is moderate with a positive growth trajectory.

2. Financial Strength: The balance sheet as at 31 December 2020 shows fixed assets of £20.46m and net current assets of £2.5m, resulting in net assets of £22.96m and shareholders’ funds of £23.63m. This indicates a strong capital base and low gearing risk. Current assets include a healthy cash position of £3.85m and trade debtors of £0.75m, comfortably covering current liabilities of £2.1m. The company’s low share capital (£6) is typical for private limited companies and does not detract from net asset strength. The financial statements have been audited with unqualified opinion and confirm a sound financial foundation.

3. Cash Flow Assessment: The company holds significant cash reserves (£3.85m) relative to its current liabilities (£2.1m), providing strong liquidity and working capital adequacy. The positive net current assets of £2.5m suggest the company can meet short-term obligations without difficulty. Although the first year showed an adjusted EBITDA loss (-£92.8k), the directors expect breakeven in the second half of 2021 and have a strong sales pipeline. The company’s cash management policies and credit risk controls on debtors are adequate to mitigate liquidity risk. Overall, the cash flow position is robust for the current stage of the business.

4. Monitoring Points:

• Revenue and EBITDA progression in subsequent financial years to confirm sustainable profitability and cash generation.
• Trade debtor ageing and credit risk exposure to ensure timely collections.
• Management of operational risks related to IT, data security, and partner relationships.
• Impact of market and economic conditions on customer demand, especially in financial services.
• Any changes in director appointments or governance that may affect control and financial oversight.
• Timely filing of future accounts and confirmation statements to maintain compliance.