Company Number: 13507642

Analysis Date: 2025-07-20 18:09 UTC

1. Credit Opinion: CONDITIONAL APPROVAL
   Southbank Software Limited is a micro-entity operating in business and domestic software development, showing modest but stable net assets around £10k-12k over recent years. The company has maintained positive net current assets for the last three years, reflecting some working capital buffer. However, the decline in current assets and net assets from 2023 to 2024 signals some liquidity tightening. The small scale, limited asset base, and low employee count (2) suggest limited operational scale and potential vulnerability to cash flow shocks. The directors have no adverse records, which supports governance confidence. Credit approval is conditional on close monitoring of cash flows and receivables management given the company’s tight liquidity and modest equity buffer.

2. Financial Strength:

• Fixed assets stable at around £5.7k, indicating limited capital investment.
• Net current assets positive at £4.5k (2024), down from £6.1k (2023), showing reduced working capital.
• Net assets decreased to £10.2k in 2024 from £11.9k in 2023, reflecting a slight decline in retained earnings or equity.
• Shareholders’ funds mirror net assets, indicating no external debt on the balance sheet.
  Overall, the balance sheet is modest but solvent with no gearing, though asset base and equity are minimal.

3. Cash Flow Assessment:

• Current assets mainly likely trade receivables and cash totaling £6.7k, sufficient to cover current liabilities of £2.2k.
• Positive net current assets indicate a short-term liquidity cushion; however, the reduction year-on-year calls for vigilance.
• Average employees reduced from 3 to 2, possibly reflecting cost control or downsizing to manage cash flow.
• No audit requirement suggests small scale but also less financial detail available, increasing reliance on management disclosures.
  Liquidity is adequate for current operations but limited in buffer against unforeseen expenses or revenue delays.

4. Monitoring Points:

• Track cash flow statements and aging of receivables to ensure timely collections.
• Monitor any changes in current liabilities, especially short-term creditors which could impact liquidity.
• Watch for any changes in directors or ownership that could affect governance and business continuity.
• Review future filings for revenue and profit trends to assess financial trajectory.
• Keep an eye on employee count as a proxy for operational scaling or contraction.