VB SOFTWARE SYSTEMS LTD

Executive Summary

VB Software Systems Ltd exhibits a sound financial position for a micro-entity with growing net assets and strong working capital. Liquidity levels are healthy, and no adverse credit signals or compliance issues are noted. Based on current financials and operational stability, credit approval is recommended with standard monitoring of liquidity and governance going forward.

VB SOFTWARE SYSTEMS LTD - Analysis Report

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.