SOFTWARE CONCEPTS LIMITED

Executive Summary

Software Concepts Limited is a newly incorporated micro business with very limited financial strength and negligible net assets. Its current liquidity position is tight with minimal working capital, and there is no evidence of profitable operations or cash flow generation. Given these factors, credit risk is high, and approval for credit facilities is not recommended at this stage without significant financial improvement.

SOFTWARE CONCEPTS LIMITED - Analysis Report

Company Number: 14358118

Analysis Date: 2025-07-29 19:48 UTC

1. Credit Opinion:
   DECLINE. Software Concepts Limited is a very young micro-entity with minimal financial resources and negligible net assets (£50 as of 30/09/2024). The company’s financial position is extremely weak, showing a net asset turnaround from negative (£-70) in 2023 to only marginally positive (£50) in 2024. The minimal working capital and lack of fixed assets in the latest year raise serious concerns about its ability to service any debt or meet commercial obligations promptly. The company has only one employee and no evidence of profitability or cash flow strength, indicating limited capacity to withstand business or economic stress.

2. Financial Strength:
   The balance sheet is very thin with total net assets of just £50 at the last year-end. Current assets are barely covering current liabilities, yielding a net current asset position of only £50. There are no fixed assets reported in 2024, suggesting no substantive capital investment or tangible collateral. The company’s equity base is negligible, and the small shareholder funds reflect very limited financial buffer. This fragile capital structure is insufficient to absorb shocks or support growth.

3. Cash Flow Assessment:
   Current assets mainly consist of cash or short-term receivables and total only £1,058, while current liabilities stand at £1,008, providing an extremely tight liquidity position. The working capital margin is effectively zero, which is risky for managing operational expenses or unexpected costs. With just one employee and no signs of scalable revenue, internal cash generation appears minimal or non-existent. The company’s ability to generate sustainable cash flow to service debt or finance operations is doubtful.

4. Monitoring Points:

• Monitor future filings for any improvement in net assets and profitability.
• Watch for growth in current assets relative to liabilities to assess liquidity improvements.
• Track cash flow statements (if available) or any notes on revenue generation or customer contracts.
• Review director conduct and any changes in ownership or control that might affect financial stability.
• Keep an eye on compliance with filing deadlines to avoid administrative penalties or regulatory concerns.