Company Number: 13289149

Analysis Date: 2025-07-19 12:05 UTC

1. Credit Opinion: APPROVE
   VB Software Systems Ltd demonstrates a stable and improving financial position with consistent working capital surpluses and growing net assets over the last three years. The company operates in a niche software development sector and is managed by a single director with no adverse records. The micro-entity size limits detailed disclosure but the financials show sound liquidity and no overdue filings, supporting a low credit risk profile. Approval is recommended for credit facilities within reasonable limits reflecting its size and trading history.

2. Financial Strength:

• The company’s net assets increased from £4,938 in 2021 to £21,074 in 2024, highlighting growth and retained earnings accumulation.
• Fixed assets are minimal (£3,229), common for a software developer, indicating low capital intensity.
• No long-term borrowings are reported as of 2024, improving financial stability.
• Share capital is nominal (£1), with capital and reserves primarily built from retained profits.
• The absence of long-term liabilities and positive net assets reflect a strong balance sheet for a micro entity.

3. Cash Flow Assessment:

• Current assets increased significantly from £14,066 in 2021 to £31,028 in 2024, with current liabilities also rising but at a lower rate, leading to a healthy net current asset position of £17,845 at the latest year-end.
• The company maintains positive working capital, supporting operational liquidity and creditor payments.
• The growth in current assets suggests good cash or receivables management, aligning with the business model of software development that typically has low inventory and capital requirements.
• No indications of cash flow stress or liquidity constraints are evident from the data.

4. Monitoring Points:

• Continue monitoring net current assets and net asset growth to ensure the company maintains liquidity and profitability as it matures.
• Watch for any changes in creditor profiles, especially if credit terms extend or if long-term liabilities emerge.
• Keep an eye on director status and any changes in management or ownership that could impact governance.
• Given the company’s small scale, monitor for any significant fluctuations in revenue or cash flows that could affect creditworthiness.
• Review any upcoming filings for timely submission and accuracy to avoid compliance risks.