OPENDIALOG AI LIMITED

Executive Summary

OpenDialog AI Limited presents a robust financial position with strong liquidity, growing equity, and prudent management despite being a young company. The firm’s cash reserves and net current assets comfortably cover liabilities, supporting its ability to meet credit obligations. Continued monitoring of cash flow and operational progress is advised to ensure sustainable growth and financial stability.

OPENDIALOG AI LIMITED - Analysis Report

Company Number: 13888655

Analysis Date: 2025-07-20 18:57 UTC

1. Credit Opinion: APPROVE
   OpenDialog AI Limited demonstrates a strong liquidity position, substantial net current assets, and positive net assets growth in its early years. The company is actively growing as evidenced by the increase in cash reserves and shareholders’ funds. The management team includes professionals with relevant expertise and no adverse director conduct records are noted. Although the company is still in its infancy, its ability to maintain healthy working capital and a solid equity base supports its capacity to service debt and meet financial obligations. Approval is recommended with standard monitoring.

2. Financial Strength:
   The balance sheet shows a solid financial position for a young private limited company. Fixed assets have increased to £28.7k, mainly computer equipment, supporting operational capacity. Current assets stand at £4.07 million, driven largely by cash of £3.75 million, which is more than sufficient to cover current liabilities of £451.8k, resulting in net current assets of £3.62 million. Net assets have more than doubled year on year to £3.65 million, reflecting strong equity growth primarily from share premium and capital contributions. The company retains accumulated losses in the profit and loss reserve, typical of an early-stage tech business investing in growth.

3. Cash Flow Assessment:
   The company has excellent liquidity with cash and equivalents of £3.75 million as at April 2024, a significant increase from £1.8 million the prior year. Current liabilities are manageable and short-term creditor balances have reduced slightly. Net working capital is very healthy, indicating ample funds to meet short-term obligations without liquidity stress. There are no significant borrowings or overdrafts, and loans from directors are minimal. The operating lease commitments of £51k are modest relative to cash flows. Overall, cash flow and working capital metrics suggest high financial flexibility and low risk of cash flow constraints.

4. Monitoring Points:

• Track ongoing cash burn and operational cash flow to ensure liquidity remains strong as the company invests in growth.
• Monitor deferred income and accrued liabilities to assess revenue recognition and future cash inflows.
• Watch for changes in share capital structure and any new debt facilities that could affect leverage.
• Review progress in converting R&D and intangible investments into profitable operations to reduce accumulated losses.
• Keep an eye on director appointments and any regulatory changes impacting governance or financial reporting.