Company Number: 12870759

Analysis Date: 2025-07-29 12:26 UTC

1. Credit Opinion: CONDITIONAL APPROVAL
   Scylla Computers Ltd is a micro private limited company with a relatively low equity base and significant current liabilities exceeding current assets by a substantial margin. While the company shows a slight improvement in net assets from £2,651 (2023) to £14,185 (2024), the large negative working capital position (net current liabilities of £411,364 in 2024) raises concerns about short-term liquidity and ongoing ability to meet immediate obligations. The company has been consistently operating with tight cash resources, which necessitates close monitoring. Approval for credit facilities may be considered with conditions such as requiring up-to-date management accounts, confirmation of cash flow forecasts, and possibly personal guarantees or collateral to mitigate risk.

2. Financial Strength:
   The balance sheet reflects a modest increase in fixed assets from £406k (2023) to £425k (2024), indicating some investment in long-term assets. However, current liabilities remain disproportionately high relative to current assets, resulting in a working capital deficit exceeding £400k. Shareholders’ funds, while positive at £14k, remain minimal compared to liabilities, suggesting thin capitalization and limited buffer against financial stress. The company’s financial trajectory shows incremental improvement but is still fragile due to liquidity constraints.

3. Cash Flow Assessment:
   The negative net current assets position indicates potential cash flow challenges in meeting short-term liabilities. Current assets are very low (around £2k), implying limited cash or receivables immediately available. The company’s ability to generate sufficient operating cash flow to cover the large current liabilities is uncertain without further detailed cash flow information. The increase in average employees from 1 to 4 suggests growth but may also imply higher short-term cash demands.

4. Monitoring Points:

• Working capital ratio and trend in net current assets
• Timeliness and completeness of accounts and confirmation statements
• Cash flow forecasts and actual operating cash flows
• Any changes in fixed asset investments and financing
• Director conduct and ownership changes (currently stable)
• Customer payment patterns and debtor aging (if available)