Company Number: 13615201

Analysis Date: 2025-07-29 13:45 UTC

1. Credit Opinion: APPROVE
   SurrealDB Ltd demonstrates a strong financial position with substantial net current assets and net assets relative to its liabilities. The company’s liquidity position is robust, supported by significant cash reserves, indicating a strong capacity to meet short-term obligations and service potential credit facilities. The business operates in the software development and IT services sector, which generally has growth potential, and the recent appointment of an experienced director connected to a reputable capital firm suggests sound management oversight and strategic direction. There are no overdue filings or signs of financial distress.

2. Financial Strength:
   As of 31 December 2022, SurrealDB Ltd reported net assets of approximately £4.86 million, with fixed assets of only £2,515, indicating the company’s value is largely in intangible assets or investments not capitalized. Current assets total nearly £4.9 million, predominantly cash (£4.88 million), against current liabilities of £42,010, resulting in a very strong net working capital position of £4.85 million. Shareholders’ funds are robust at £5.09 million, mainly comprising a share premium account, with a modest accumulated loss reflected in the profit and loss reserve (-£236k), typical for an early-stage technology company investing in growth.

3. Cash Flow Assessment:
   The cash position is very strong, with cash and equivalents covering current liabilities by over 100 times, indicating excellent liquidity and minimal risk of cash flow shortfalls. Debtors are low (£14,566) and there is no indication of significant trade debt or receivables risk. The company’s financial statements confirm that it adopts a going concern basis, reflecting management confidence in ongoing operations and funding. The absence of bank debt or other financial liabilities further supports a conservative and sound cash flow profile.

4. Monitoring Points:

• Monitor the company’s profitability trajectory as it moves beyond the initial investment phase to ensure it can generate sustainable operating cash flow.
• Watch for any significant increase in liabilities or changes in working capital that may pressure liquidity.
• Keep track of any new credit facilities or debt instruments that could impact leverage and repayment capacity.
• Review future accounts for evidence of capital expenditure or operational expansion to assess impact on cash reserves.
• Monitor director changes and management commentary for indications of strategic shifts or financial risk.