ARRAY DIGITAL LTD

Executive Summary

Array Digital Ltd presents a modest but stable financial foundation typical of a start-up in software development, with positive net assets and working capital. While initial credit approval is feasible, risk is elevated due to limited trading history and scale. Close monitoring of liquidity and financial performance is essential to support credit exposure going forward.

ARRAY DIGITAL LTD - Analysis Report

Company Number: 14615172

Analysis Date: 2025-07-29 18:57 UTC

1. Credit Opinion: CONDITIONAL APPROVAL
   Array Digital Ltd is a newly incorporated private limited company operating in business and domestic software development. The company shows a positive net asset position and working capital surplus, indicating initial financial stability. However, being a start-up with only one financial period filed, limited financial history, and modest asset size means credit risk remains moderately elevated. Approval for credit facilities is recommended with conditions such as relatively low exposure limits, periodic financial reviews, and close monitoring of cash flow and payment performance.

2. Financial Strength:
   The balance sheet as of 31 January 2024 reports total net assets of £7,925 supported by £18,047 in cash and modest fixed assets of £690. Current liabilities stand at £10,812, primarily taxation and social security obligations. The company maintains a positive net current asset position (£7,235), reflecting adequate short-term liquidity. Shareholders' funds equal net assets, indicating no external debt leverage. Given the start-up phase, the financial base is small but sound with no signs of insolvency risk.

3. Cash Flow Assessment:
   Cash holdings of £18,047 against current liabilities of £10,812 provide a reasonable liquidity cushion for immediate obligations. The net current assets position and positive working capital suggest the company can meet short-term liabilities without stress. However, limited historical cash flow data and lack of reported profitability metrics highlight the need for caution. Cash flow adequacy should be monitored closely as the business scales and revenue inflows stabilize.

4. Monitoring Points:

• Timely filing of future accounts and confirmation statements to ensure compliance.
• Evolution of turnover and profit margins as the company matures.
• Management of taxation and social security payments to avoid accrual of liabilities.
• Cash flow trends particularly in relation to client payment cycles and operating expenses.
• Any changes in ownership or director appointments that could affect governance or control.