SATSOFT SPACE LTD

Executive Summary

Satsoft Space Ltd is a newly incorporated IT consultancy with poor initial financial metrics, including negative working capital and shareholders’ funds. The company’s liquidity position is weak, with limited cash and high short-term liabilities, raising serious doubts about its ability to meet credit obligations. Without significant capital improvement or operational progress, credit facilities are not recommended at this stage.

SATSOFT SPACE LTD - Analysis Report

Company Number: 15088966

Analysis Date: 2025-07-29 20:53 UTC

1. Credit Opinion: DECLINE. Satsoft Space Ltd is an early-stage company incorporated in August 2023, with only one financial year filed. The financials reveal a weak liquidity position with net current liabilities of £555 and negative shareholders’ funds of £655, indicating an equity deficit. The company has minimal assets (£135 current assets) and significant short-term liabilities (£690). The lack of profitability data and absence of cash flow details further impair confidence in its ability to service debt or meet credit obligations. The sole director and shareholder controls the company, limiting external governance oversight. Given these factors, the company is not currently creditworthy for additional borrowing or credit facilities without substantial improvement or external support.

2. Financial Strength: The balance sheet shows a fragile financial structure. Current assets of £135 (cash £55, debtors £80) are insufficient to cover current liabilities of £690, resulting in a working capital deficit of £555. Shareholders’ funds are negative (£-655), reflecting accumulated losses or initial funding shortfall. No fixed assets or long-term financing are reported. The company is essentially undercapitalized with limited financial buffer to absorb operational setbacks. This weak equity base and negative working capital raise concerns about solvency if liabilities crystallize or revenues fail to materialize.

3. Cash Flow Assessment: Cash at bank is only £55, indicating very limited liquidity. Debtors of £80 may be recoverable but represent a small amount and no aging details are available. Current liabilities of £690 are due within a year, creating immediate pressure on cash resources. The company’s cash generation capacity is unproven given the absence of profit and loss disclosure. The severe working capital shortage implies the company may rely on additional equity injections or director loans to meet short-term obligations. Without positive operating cash flow or external funding, liquidity risk is high.

4. Monitoring Points:

• Cash flow trends and ability to convert debtors to cash promptly.
• Improvement in working capital position and reduction of current liabilities.
• Profitability indicators once available in future accounts.
• Any additional capital injections or external financing arrangements.
• Changes in director or management structure that may strengthen governance or financial discipline.
• Timely filing of future accounts and confirmation statements to maintain transparency.