STEPUP TECHNOLOGY LTD

Executive Summary

StepUp Technology Ltd is a micro-entity with minimal and declining turnover, consistent operating losses, and limited asset backing. Its financial profile and cash flow position do not support credit extension at this stage. Continuous monitoring of revenue recovery and liquidity is essential before reconsidering credit approval.

STEPUP TECHNOLOGY LTD - Analysis Report

Company Number: 14306154

Analysis Date: 2025-07-20 16:59 UTC

1. Credit Opinion: DECLINE
   StepUp Technology Ltd shows very limited trading activity and poor financial performance over its two-year history. The turnover has dropped significantly from £831 in 2023 to just £133 in 2024, indicating a sharp decline in revenue. The company reported losses both years (£1,802 in 2023 and £150 in 2024) and has minimal operating scale. The lack of revenue growth and ongoing losses raise concerns about its ability to generate sufficient cash to service any credit facility. Given its micro-entity status and early stage, there is insufficient evidence of sustainable trading or financial resilience. Without stronger financial performance or additional security, credit exposure is not justified.

2. Financial Strength:
   The balance sheet is small but stable in terms of net assets, holding £500 at both year ends. Fixed assets remain constant at £213, while current assets have declined sharply from £1,646 in 2023 to £437 in 2024. Current liabilities have been eliminated from the 2024 accounts or are not explicitly shown, improving net current assets to £437. However, a provision for liabilities of £150 appears in 2024, reducing total net assets. The company is adequately capitalised for its size but shows very limited operational scale and asset backing, with no retained earnings or reserves that indicate profitability.

3. Cash Flow Assessment:
   Liquidity appears constrained. The significant decline in current assets and turnover suggests weakening cash inflows. The net current assets of £437 represent working capital but on a very small scale. Absence of operating profit and declining sales imply negative operating cash flow. There is no indication of external financing or cash injections. With just one employee and minimal costs, the burn rate might be low, but the company’s ability to generate positive cash flow or repay debt is questionable.

4. Monitoring Points:

• Track turnover and profitability trends in future filings to detect any operational improvements.
• Monitor cash balances and working capital closely for liquidity stress.
• Review any changes in provisions or liabilities that might affect net asset value.
• Assess management actions toward revenue generation or cost control.
• Watch for any director changes or new external funding that could impact credit risk.