CARTOTYPE LIMITED

Credit Opinion: CONDITIONAL

Cartotype Limited is an active private software development company incorporated in 2009. It files accounts and confirmation statements on time and is not in insolvency proceedings. However, the balance sheet is extremely small: net assets of £4,101 as at 30 September 2025 provide minimal loss-absorbing capacity. Cash at bank of £16,895 is largely offset by creditors of £13,042, of which £10,406 is owed to HMRC for taxation and social security. The filed accounts are filleted, so no profit and loss account is publicly available to assess trading profitability or debt-service capacity. Ownership is concentrated in one person with significant control. Any facility should therefore be conditional on security (such as a cash deposit or guarantee from the controlling shareholder), a modest limit, and evidence that HMRC liabilities are being paid as they fall due.

Financial Strength

This is a micro balance sheet. Fixed assets are negligible at £248. Current assets consist almost entirely of cash (£16,895); debtors have fallen to nil from £722 in the prior year. Net current assets improved to £3,853 from a negative £160 in 2024. Shareholders’ funds are £4,101, up from £143 in 2024 but still well below the historical peak of £18,429 in 2019. The equity base is thin relative to any lending exposure, and the company’s resilience depends heavily on continued cash generation rather than retained reserves or asset cover. The controlling shareholder holds more than 75% of shares and voting rights, concentrating control and risk.

Cash Flow Assessment

Liquidity is adequate for immediate obligations but tight. Cash covers current creditors approximately 1.3 times. However, most creditors are statutory liabilities: £10,406 to HMRC and £2,300 to trade creditors. There are no disclosed borrowings in the filed accounts. With one employee and no debtors, working capital requirements appear low, but so is the buffer against unexpected costs or a revenue interruption. Repayment of any bank facility would rely on cash balances rather than proven trading cash flow, as the profit and loss account is not filed.

Monitoring Points

• Quarterly or annual management accounts including profit and loss, since the filed accounts do not disclose turnover or profit.
• Trend in HMRC liabilities (taxation and social security); any increase or time-to-pay arrangement would indicate cash pressure.
• Cash balance relative to total creditors; cash falling below creditor levels would heighten insolvency risk.
• Debtor levels and customer concentration in the software development business.
• Timeliness of accounts and confirmation statement filings.
• Any change in directors, control, or ownership.