SYNACK EUROPE LIMITED

Executive Summary

Synack Europe Limited, a small UK subsidiary of a US parent, demonstrates adequate financial health and liquidity with positive net assets and no debt. The company’s creditworthiness is supported by strong group backing and an unqualified audit, but its limited trading history and reliance on intercompany receivables warrant conditional approval and ongoing monitoring. Continued parent support and cash flow management remain critical to sustaining credit risk at acceptable levels.

SYNACK EUROPE LIMITED - Analysis Report

Company Number: 14458117

Analysis Date: 2025-07-29 12:50 UTC

1. Credit Opinion: APPROVE (with conditions)
   Synack Europe Limited is a newly incorporated private limited company (Nov 2022) that began trading in April 2023. It operates as a sales and marketing service provider to its US parent company, Synack Inc., which holds 75-100% ownership and voting rights, indicating strong group support. The current financials show positive net current assets (£219k) and net assets (£219k), with no overdue filings and an unqualified audit report. While the company has a modest equity base and is still in its infancy stage, the backing of a financially stable parent and absence of negative indicators supports credit approval. However, given limited operating history and reliance on the parent, credit should be conditional on ongoing group support and monitoring of intercompany receivables.

2. Financial Strength
   The balance sheet reflects a healthy liquidity position with current assets of £639k against current liabilities of £420k, yielding net current assets (working capital) of £219k. Cash balances stand at £198k, providing reasonable short-term liquidity. Debtors are mainly amounts owed by the parent company (£429k), underscoring reliance on group transactions. Shareholders’ funds equal net assets at £219k, showing modest capitalization but no debt on the balance sheet. The company has no long-term liabilities or lease commitments, limiting financial risk. Overall, the financial strength is adequate for the company’s scale and early stage, but concentrated exposure to the parent company should be considered.

3. Cash Flow Assessment
   Cash at bank and in hand of £198k combined with positive net current assets suggests the company can meet short-term obligations. Creditors include corporation tax, social security, and accruals totaling £420k, all current liabilities. The company’s revenue derives from an intercompany agreement charging cost plus 7.5%, indicating predictable cash inflows tied to group activity. With 28 employees and pension commitments, cash outflows appear controlled. No non-cancellable operating leases reduce fixed cash commitments. Overall, liquidity is sufficient but depends on continued parent company payments, warranting cautious cash flow monitoring.

4. Monitoring Points

• Intercompany receivables: Monitor aging and recoverability of amounts owed by parent to avoid liquidity strain.
• Continued group support: Any change in parent company backing or business model may impact creditworthiness.
• Revenue growth and profitability: Track progress beyond initial trading period to assess operational sustainability.
• Cash flow trends: Watch working capital and cash balances relative to creditors and tax obligations.
• Compliance: Ensure continued timely filing of accounts and confirmation statements to avoid regulatory risks.