Company Number: 13550163

Analysis Date: 2025-07-20 16:37 UTC

1. Credit Opinion: APPROVE
   DAB Digital Designs Limited demonstrates a positive turnaround in financial position with net assets improving from a negative £430 in 2022 to a positive £2,558 in 2023. The company has no overdue filings, indicating good compliance discipline. Its micro-entity status limits the scale of operations, but current financials suggest it is now solvent with positive working capital. Given the early stage of the business (incorporated 2021) and stable management, the company appears capable of meeting short-term liabilities and servicing debt at a modest level. The credit recommendation is approval, subject to standard monitoring, as the company is showing early signs of financial stabilization and growth.

2. Financial Strength:

• Fixed assets are minimal (£689), consistent with a small design firm.
• Current assets increased significantly from £284 to £5,022, reflecting improved liquidity or receivables management.
• Current liabilities increased but remain well covered by current assets, producing positive net current assets of £1,869 (2023) compared to negative £1,339 (2022).
• Net assets moved from a deficit of £430 to a positive £2,558, indicating an improved financial position and capital base.
• Shareholder funds now positive, showing retained earnings or capital injection has strengthened equity.

3. Cash Flow Assessment:

• Positive net current assets indicate adequate short-term liquidity to cover operational liabilities.
• Cash or cash equivalents are not explicitly stated but are likely included in current assets; the significant increase suggests better cash or debtor levels.
• The company employs 2 people, keeping overheads low.
• No audit requirement reduces administrative cost but limits transparency; however, compliance with filing deadlines is good.
• Working capital trend is favorable, reducing risk of liquidity strain.

4. Monitoring Points:

• Maintain monitoring of current assets and liabilities to ensure positive working capital is sustained.
• Watch for any increases in short-term debt that could strain liquidity.
• Monitor turnover and profitability trends as these are not disclosed but critical for ongoing debt service capacity.
• Keep an eye on director or shareholder changes, especially given that two directors also have significant control.
• Confirm continued timely filing of accounts and confirmation statements.