SOLITUDE SOFTWARE LTD

Executive Summary

Solitude Software Ltd is a newly formed micro-entity operating in software development with positive net assets but negative working capital, indicating early-stage liquidity challenges. Regulatory compliance is satisfactory with no overdue filings, and governance appears sound. However, limited financial history and scale suggest investors should seek further clarity on liquidity management and business sustainability before committing capital.

SOLITUDE SOFTWARE LTD - Analysis Report

Company Number: 15113854

Analysis Date: 2025-07-19 12:44 UTC

1. Risk Rating: MEDIUM

Justification: Solitude Software Ltd is a recently incorporated micro-entity with limited operating history and small scale financials. The presence of net current liabilities indicates potential liquidity pressure, although total net assets remain positive. The absence of overdue filings and director integrity supports operational compliance, but the limited asset base and negative working capital warrant caution.

2. Key Concerns:

• Negative net current assets (£-2,015) suggest the company’s short-term liabilities exceed short-term assets, indicating potential liquidity constraints.
• Very limited operating history (incorporated Sept 2023) restricts visibility on sustainable cash flow generation and business stability.
• Small scale of operations and micro-entity status means minimal financial disclosure and lack of audit, limiting transparency for investors.

3. Positive Indicators:

• Timely filing of both annual accounts and confirmation statements with Companies House indicates good regulatory compliance.
• Positive shareholders’ funds (£1,799) and total net assets, although small, show some capital buffer.
• Directors and Persons with Significant Control are fully identified with no negative records or disqualifications, suggesting sound governance at leadership level.

4. Due Diligence Notes:

• Investigate the nature and maturity profile of current liabilities to assess liquidity risk more precisely.
• Review business plan and cash flow forecasts to determine the path to profitability and sustainable operations.
• Confirm the adequacy of initial capital and whether there is access to additional funding if needed.
• Assess customer base and contracts to evaluate revenue visibility for future periods.
• Verify that the directors have relevant experience in software development and management to support business growth.