Company Number: 13874126

Analysis Date: 2025-07-20 13:32 UTC

1. Risk Rating: LOW
   Credo Digital Services Limited shows a solid net asset position relative to its size and operates within the micro-entity accounting framework. Its net current assets and net assets have improved substantially in the latest financial year, suggesting healthy solvency and liquidity for a company of its scale. No overdue filings or regulatory issues are apparent.

2. Key Concerns:

• Limited Scale and Operating History: Incorporated in 2022, the company has only two full years of financial data, which restricts trend analysis and increases uncertainty about operational resilience.
• Modest Asset Base: Fixed assets remain very low (£1,540 in 2024), indicating limited capital investment, which may constrain growth or operational flexibility.
• Concentrated Control: The two directors each hold between 25-50% share and voting rights with rights to appoint/remove directors, concentrating control but potentially increasing governance risk in the absence of wider oversight.

3. Positive Indicators:

• Improved Financial Position: Net current assets increased from £1,452 in 2023 to £9,367 in 2024, with net assets rising from £1,124 to £10,107, indicating improved liquidity and solvency.
• Compliance: All statutory filings, including accounts and confirmation statements, are up to date with no overdue returns, demonstrating good regulatory compliance.
• Stable Management Team: The two appointed directors have remained consistent since incorporation, with clear roles and no disqualifications or adverse records.

4. Due Diligence Notes:

• Review detailed profit and loss accounts to assess revenue streams, profitability, and cash flow generation since incorporation.
• Investigate the nature of current assets (£47,344 in 2024) to determine liquidity quality—e.g., cash, receivables, or inventory.
• Examine any inter-company or related party transactions given the concentrated control by the two directors.
• Confirm if there are any contingent liabilities or off-balance-sheet exposures not reflected in the micro-entity accounts.
• Assess business model sustainability given the SIC code 96090 (Other service activities not elsewhere classified) which is broad and may mask operational risks.