Company Number: 12735769

Analysis Date: 2025-07-29 19:11 UTC

1. Credit Opinion: CONDITIONAL APPROVAL
   GoMetro UK Limited is an active private limited company operating in software publishing (SIC 58290) with a recent positive turnaround in financial position. After several years of net current liabilities and negative shareholders’ funds, the latest 2024 accounts show a significant improvement with net current assets of £1.4m and shareholders’ funds of £936k at group level. This recovery is largely due to a substantial equity injection (£5.48m share premium) and improved cash balances (£1.1m). However, the company reported a significant operating loss (£3.8m loss in 2024) and cash flow forecasts indicate continuing cash outflows, relying on additional funding to maintain operations. The directors acknowledge material uncertainties regarding going concern but expect further injections from shareholders. Given the current positive balance sheet but ongoing losses and dependence on external funding, credit facilities may be extended on a conditional basis, subject to monitoring and covenant protections.

2. Financial Strength:

• The balance sheet has improved markedly from a negative net asset position in 2023 (£-403k) to a positive £936k in 2024, driven by a £5.5m capital raise.
• Fixed assets are modest (£64k group), mainly intangible and tangible assets.
• Current assets are strong (£2.23m group) with £1.1m cash and £570k long-term debtors, while current liabilities have reduced to £824k.
• Long-term creditors of £530k exist, indicating some financing or deferred liabilities.
• The group equity comprises share capital (£419) and share premium (£5.48m) offset by accumulated losses (£4.67m), reflecting a history of losses but recent capital support.
• The company remains loss-making and heavily reliant on investor funds, showing limited internal earnings generation.

3. Cash Flow Assessment:

• Cash position improved to over £1m at group level, a significant recovery from near zero the prior year, reflecting new equity funds.
• Debtors are substantial (£570k due after one year), which may strain liquidity if not collected timely.
• Current liabilities are manageable with no overdrafts reported, supporting near-term liquidity.
• However, management’s forecasts indicate net cash outflows through 2026, implying ongoing reliance on external funding.
• The absence of operating profits and reliance on milestone-dependent funding injections pose liquidity risks if funding does not materialize as expected.

4. Monitoring Points:

• Track actual cash flow vs budget to confirm funding injections occur as planned and liquidity remains stable.
• Monitor debtor ageing and collection efficiency to ensure working capital is not eroding cash.
• Watch covenant compliance if credit facilities are granted, especially relating to net assets and liquidity ratios.
• Review quarterly management accounts for any worsening losses or cash burn acceleration.
• Assess any changes in shareholder support or director stability given recent multiple director changes.