SOFTLOGIX SOLUTIONS LIMITED

Executive Summary

Softlogix Solutions Limited maintains a positive equity position and adheres to regulatory requirements, but the sharp increase in long-term creditors and reduction in current assets pose liquidity and solvency concerns. Further inquiry into debt structure and cash flows is advised to fully assess financial stability and operational sustainability.

SOFTLOGIX SOLUTIONS LIMITED - Analysis Report

Company Number: 13549086

Analysis Date: 2025-07-20 13:58 UTC

1. Risk Rating: MEDIUM
   The company demonstrates positive net assets and shareholder equity, indicating solvency on paper. However, the significant increase in long-term liabilities and a decline in current assets raise concerns about liquidity and financial stability.

2. Key Concerns:

• The rise in creditors due after more than one year from £11,097 in 2024 to £78,492 in 2025 suggests increased long-term debt or obligations that could strain finances.
• Current assets decreased from £85,621 in 2024 to £55,932 in 2025, while current liabilities dropped only marginally, potentially impacting short-term liquidity.
• The decrease in net assets from £57,454 in 2024 to £46,593 in 2025 signals a reduction in the company’s equity base, which may reflect operational challenges or increased liabilities.

3. Positive Indicators:

• The company remains active and compliant with all filing deadlines, indicating good regulatory compliance and governance.
• Shareholders’ funds remain positive and substantial relative to the company’s size, suggesting maintained solvency.
• The business appears to be growing in terms of fixed assets and employees, with headcount increasing from 1 to 2 in the latest year, which may signal operational development.

4. Due Diligence Notes:

• Clarify the nature and terms of the increased long-term liabilities to assess repayment risk and covenant terms.
• Review cash flow statements and management accounts to understand liquidity dynamics beyond the balance sheet snapshot.
• Investigate any off-balance sheet commitments or contingent liabilities that may not be reflected in micro-entity accounts.
• Evaluate the business model sustainability given the small scale of operations and relatively low current assets.