Company Number: 15168318

Analysis Date: 2025-07-20 18:05 UTC

1. Credit Opinion: APPROVE with conditions.
   Sagittal Limited is a newly incorporated private limited company (since September 2023) operating in the business and domestic software development sector. Its first set of accounts shows a strong liquidity position and positive net assets, supported primarily by significant cash reserves. However, the company is early-stage with limited trading history and a negative retained earnings (loss) balance, which is typical for startups investing in growth. Approval is recommended provided ongoing monitoring of trading performance and cash burn to ensure sustainable operations.

2. Financial Strength:
   The company reports fixed assets of £11,220 and current assets of £818,238, dominated by cash at £768,795. Current liabilities stand at £24,433, resulting in net current assets of £793,805, a very healthy working capital position. Total net assets are £805,025, supported by £1,193,267 in share premium and a negative profit and loss reserve of £388,244, reflecting initial losses or startup costs. The balance sheet is strong with no long-term liabilities reported. The low share capital (£2.55) and high share premium suggests recent equity injections to fund early development.

3. Cash Flow Assessment:
   The company has nearly £769k cash available, which provides significant liquidity to cover short-term obligations of £24k and operating expenses. Debtors are modest at £49k, with minimal trade creditors. Cash flow risk is low in the short term; however, the absence of historical cash flow statements limits assessment of operational cash generation. Given the early stage of trading, ongoing cash flow monitoring is vital to ensure funding sufficiency and to track burn rate as the business scales.

4. Monitoring Points:

• Future trading results and profitability trends, especially reversal of the current negative retained earnings.
• Cash burn rate relative to revenue growth to assess sustainability without further capital injections.
• Timely filing of annual accounts and confirmation statements to maintain compliance.
• Potential increase in current liabilities or creditor balances that might strain working capital.
• Development and commercial traction in software products or services to validate business model.