SOFTWARE FOR INFORMATION THEORETIC APPLICATIONS LIMITED

Executive Summary

Software For Information Theoretic Applications Limited is a small, newly formed software and consulting company with a positive equity base and sufficient cash to meet short-term liabilities. While the company demonstrates sound initial financial stewardship, credit approval should be conditional on monitoring operational progress and cash flow sustainability. Continued oversight of revenue development and working capital management is essential as the company moves beyond start-up phase.

SOFTWARE FOR INFORMATION THEORETIC APPLICATIONS LIMITED - Analysis Report

Company Number: 14650149

Analysis Date: 2025-07-29 13:24 UTC

1. Credit Opinion: APPROVE with conditions.
   Software For Information Theoretic Applications Limited is a newly incorporated small private limited company engaged in software development and technical consulting. The company shows a positive net asset position with shareholders’ funds of £9,909 and net current assets of £9,644 as of their first financial year end (29 Feb 2024). While the company is very early stage with limited operating history and no employees yet, the cash balance of £13,809 exceeds current liabilities of £4,165, indicating the capacity to meet short-term obligations. Credit approval is recommended but contingent on continued monitoring of operational progress, revenue generation, and maintenance of positive liquidity as the business develops.

2. Financial Strength:
   The balance sheet reflects a modest but positive financial position. Fixed assets are negligible (£265) representing computer equipment, appropriate for a technology start-up. The net asset base of £9,909 is entirely equity-funded with no external debt beyond a small director loan (£1,668). There is no indication of financial leverage or overextension. The company is classified as a small entity and has complied with filing and statutory requirements on time. The absence of employees suggests low overheads at this stage but also limited revenue capacity.

3. Cash Flow Assessment:
   The company holds cash of £13,809 which is sufficient to cover current liabilities of £4,165 comfortably. Net current assets are positive at £9,644, indicating healthy working capital. However, the absence of reported revenues and employees implies that cash burn rate and sources of income should be closely monitored. The presence of a director loan suggests initial funding support but external finance or operational cash inflows will be necessary for sustainable growth.

4. Monitoring Points:

• Revenue and profitability trends as the company progresses beyond initial start-up phase.
• Cash flow dynamics, especially burn rate versus new income or financing.
• Any increase in liabilities or reliance on director loans.
• Timely submission of next accounts and confirmation statements to avoid compliance risks.
• Management’s ability to scale operations and hire employees to support business growth.