DATA VALUE CREATION LTD

Executive Summary

Data Value Creation Ltd shows improving financial position with strong cash reserves but faces concentration risk in current liabilities, which have increased substantially. The company appears capable of servicing its debts currently, but credit extension should be conditional on clarification of outstanding liabilities and ongoing cash flow monitoring. Continued growth and prudent liability management are critical for sustaining creditworthiness.

DATA VALUE CREATION LTD - Analysis Report

Company Number: 12436768

Analysis Date: 2025-07-20 12:15 UTC

1. Credit Opinion: CONDITIONAL APPROVAL
   Data Value Creation Ltd demonstrates modest but positive net asset growth and a healthy cash position as of the 2024 year-end, suggesting the capacity to meet short-term obligations. However, the sharp increase in current liabilities from £2,192 in 2023 to £50,037 in 2024, largely driven by "Other creditors" and taxation/social security accruals, raises concerns about the nature and timing of these obligations. The company should clarify these liabilities and confirm ongoing cash flow sufficiency before extending significant credit. The presence of tangible assets and increased staff suggest operational expansion, but risk remains if liabilities are not managed carefully.

2. Financial Strength:
   The balance sheet reveals a net asset position of £10,549, up from £6,153 the prior year, indicating incremental capital growth. Tangible fixed assets have increased to £4,276, reflecting investments in furniture and equipment, supporting business growth. Current assets rose substantially to £56,310, dominated by cash (£53,992), which is a key strength. However, current liabilities ballooned to £50,037, resulting in a narrow net current asset margin of £6,273. The company is classified as a small entity, and equity remains low but positive. This indicates a fragile but improving financial base.

3. Cash Flow Assessment:
   Cash on hand surged dramatically from £448 in 2023 to nearly £54,000 in 2024, signaling strong liquidity. Debtors decreased to £2,318, which reduces concerns about collection risk. However, the massive increase in current liabilities, especially in taxation and social security (£11,635) and other creditors (£34,645), may pressure working capital if these sums are due imminently. Net current assets remain positive but tight. The company should be monitored for timely settlement of liabilities to avoid liquidity strains.

4. Monitoring Points:

• Examine the composition and maturity profile of the large current liabilities balance to assess repayment risk.
• Monitor cash flow trends monthly to ensure liabilities, especially tax and other creditors, are met promptly.
• Track debtor collection efficiency and any changes in credit terms offered.
• Review future filings for sustained growth in net assets and improvements in profitability.
• Watch staff numbers and capital expenditures as indicators of operational scale and financial commitment.