Credit Analysis: UNIPRO LIMITED

1. Credit Opinion: CONDITIONAL

Reasoning: While the company maintains a cash-rich balance sheet with £1.3M in liquid funds and positive net assets of £1.07M, there is a concerning trajectory of material decline across key financial metrics. Net assets have fallen approximately 59% from £2.63M (2023) to £1.07M (2025), and the P&L reserve has deteriorated by approximately £867K in the latest year alone, suggesting significant trading losses. The volatility in financial performance over the historical period, combined with the absence of a filed profit and loss account, limits visibility into revenue sustainability and operational performance. Credit can be extended, but with appropriate covenants and monitoring.

2. Financial Strength

Balance Sheet Composition (FY2025): | Item | £ | Commentary | |------|---|------------| | Fixed Assets | 12,998 | Minimal; typical for software business | | Current Assets | 2,349,487 | Dominated by cash and debtors | | Current Liabilities | (1,288,394) | Trade and other creditors | | Net Current Assets | 1,061,093 | Healthy working capital position | | Provisions | (700) | Negligible | | Net Assets | 1,073,391 | Positive but declining |

Key Concerns: - Erosion of Shareholders' Funds: Net assets have declined from £2.63M (2023) to £1.07M (2025) — a £1.55M reduction over two years. The P&L reserve fell from £1.94M to £1.07M, indicating a loss of approximately £867K in FY2025 alone. - Historical Volatility: The 10-year track record shows significant swings — net assets ranged from £1.12M (2020) to £3.55M (2017). This pattern suggests the business is exposed to cyclical or contract-based revenue fluctuations. - Gearing: The company has minimal share capital (£100) and no visible long-term debt. Liabilities are entirely current, which is manageable given the cash position. - Parent Company Dependency: Unipro Holdings Ltd holds 75%+ of shares and voting rights and has the right to appoint/remove directors. Related-party transactions or group restructuring could impact creditor repayment.

Current Ratio: 1.82x (Current Assets £2.35M / Current Liabilities £1.29M) — adequate but declining from 2.66x in FY2024.

3. Cash Flow Assessment

Liquidity Position: | Metric | FY2025 | FY2024 | FY2023 | Trend | |--------|--------|--------|--------|-------| | Cash | £1,303,105 | £2,390,557 | £2,606,904 | Declining | | Debtors | £1,046,382 | £699,216 | N/A | Increasing | | Current Liabilities | £1,288,394 | £1,161,827 | £1,643,695 | Mixed |

Analysis: - Cash Coverage: Cash (£1.3M) marginally exceeds current liabilities (£1.29M), providing a 1.01x cash coverage ratio. This is adequate but has deteriorated significantly from 2.06x in FY2024. - Debtors Growth: Debtors increased by approximately 50% year-on-year (£699K to £1,046K). This warrants investigation — it could indicate revenue growth, but more likely reflects slower collections or stretched payment terms, particularly concerning given the absence of a P&L account to confirm turnover. - Cash Drain: Cash fell by £1.09M in the year (£2.39M to £1.30M). Without a P&L statement, it is difficult to determine whether this reflects operational losses, capital distributions, or movements within the group structure. - Working Capital: Net current assets of £1.06M provide a buffer, but the trajectory is concerning — down from £1.93M in FY2024.

4. Monitoring Points

Additional Recommendations: 1. Request Management Accounts: The absence of a filed P&L account is a significant limitation. Request quarterly management accounts to monitor trading performance. 2. Group Structure Review: Unipro Holdings Ltd controls the company. Request group consolidated accounts and assess whether inter-company balances or guarantees exist. 3. Debtor Quality: Investigate the £1.05M debtors balance — obtain ageing analysis and assess recoverability. 4. Cash Outflow Drivers: Clarify whether the cash reduction reflects trading losses, dividends, or inter-company transfers. 5. Director Resignation: Shaun Douglas Lawler Froome resigned in February 2026 — understand the circumstances and any impact on management continuity.