Company Number: 15238274

Analysis Date: 2025-07-20 17:56 UTC

1. Credit Opinion: CONDITIONAL APPROVAL
   Verso Waves Ltd is a recently incorporated private limited company (October 2023) operating in business and domestic software development (SIC 62012). The company’s financials for the first accounting period ending March 2025 show a net asset position of £39,859, supported primarily by intangible assets of £77,353. However, it reports net current liabilities of £18,156, indicating working capital constraints. Given the company’s start-up nature, limited trading history, and current negative working capital, credit should be extended cautiously and ideally secured or limited in amount. Approval could be considered if supported by a clear business plan, cash flow forecasts, and possibly personal guarantees from the sole director and majority shareholder, Jonathan Darrell Beech.

2. Financial Strength:
   The balance sheet shows total assets less current liabilities of £59,197, with intangible fixed assets (software development costs) net of amortisation of £77,353. The company has minimal tangible assets and limited cash (£3,699). Current liabilities of £41,933 exceed current assets of £23,777, resulting in negative net current assets of £18,156. Provisions for liabilities of £19,338 are also noted, which may indicate potential future cash outflows. The shareholders’ funds of £39,859 are modest but positive. Overall, the company’s financial strength is fragile at this early stage, reliant on intangible assets and future earnings generation.

3. Cash Flow Assessment:
   Cash at bank and in hand stands at £3,699, which is low relative to current liabilities of £41,933. Debtors amount to £20,078 but represent amounts outstanding that may not convert to cash immediately. The negative working capital position signals liquidity pressure. The company’s ability to meet short-term obligations from liquid resources is limited. Given the start-up phase, cash flow volatility is expected. Monitoring of receivables collection, creditor terms, and planned cash inflows will be critical to assess ongoing liquidity.

4. Monitoring Points:

• Working capital trends and whether net current assets improve with business growth.
• Cash flow forecasts and actual cash balances to ensure sufficient liquidity to meet liabilities.
• Debtor aging and collection efficiency to mitigate liquidity risk.
• Amortisation charges and impairment risks against intangible assets to confirm asset valuation.
• Development progress and revenue generation from software products to support profitability.
• Any changes in director/shareholder structure or new funding injections.