NATHAN SOFTWARE SOLUTIONS LTD

Executive Summary

Nathan Software Solutions Ltd is a nascent micro-entity with a clean balance sheet and positive working capital, supporting a conditional credit approval. The company’s limited operating history and small scale necessitate close monitoring of cash flow and creditor arrangements to ensure ongoing creditworthiness. Continued financial discipline and growth evidence will be critical for future credit facility considerations.

NATHAN SOFTWARE SOLUTIONS LTD - Analysis Report

Company Number: SC750597

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

1. Credit Opinion: CONDITIONAL APPROVAL
   Nathan Software Solutions Ltd is a micro-entity active for just over one year with modest asset and equity levels. The company shows positive net assets (£18,077) and net current assets (£22,604), indicating a sound short-term liquidity position. However, as a very young business with only one employee and limited fixed assets (£10,000), it lacks a financial track record and scale. Lending or extending credit should be conditional on monitoring future trading performance and cash flow generation to confirm sustainability.

2. Financial Strength:
   The balance sheet is small but healthy for a micro-entity. Current assets exceed current liabilities, resulting in positive working capital. The company’s net assets are comprised entirely of shareholders’ funds, reflecting no external long-term debt. The presence of creditors due after one year (£14,527) must be clarified as it is unusual for a micro-entity and could represent deferred income or loan balances. Overall, the financial structure shows no immediate solvency concerns, but the scale limits resilience.

3. Cash Flow Assessment:
   Current assets of £22,604 against current liabilities of £0 (net current assets equal current assets reported) suggest the company has sufficient short-term liquidity. The small size and single-employee structure imply low fixed overheads, which is positive for cash flow stability. However, with no detailed profit and loss or cash flow statement available, the sustainability of cash inflows cannot be fully assessed. The company’s ability to generate free cash flow consistent with debt servicing will need ongoing review.

4. Monitoring Points:

• Verify the nature and repayment terms of the £14,527 creditors falling due after one year.
• Track annual turnover and profitability trends to confirm growth trajectory beyond the micro-entity stage.
• Monitor cash flow statements when available to assess liquidity dynamics and working capital cycles.
• Review director and shareholder changes or any related party transactions given sole control by Mr. Jardine.
• Watch for filing compliance and timely submission of accounts and confirmation statements to avoid governance risks.