Company Number: 12488017

Analysis Date: 2025-07-20 12:13 UTC

1. Credit Opinion: CONDITIONAL APPROVAL
   Databound Limited demonstrates a stable operational status with no overdue filings and an active website presence, indicating ongoing business activity. However, the micro-entity scale and relatively low turnover (£23,384 in 2023) limit financial robustness. The company’s net assets have decreased notably from £10,947 in 2023 to £2,297 in 2024, reflecting some erosion of equity and potential profitability pressures. Directors have full control and appear stable with no adverse conduct records, but given the small scale and declining net assets, credit exposure should be limited and subject to ongoing review.

2. Financial Strength:
   The balance sheet shows modest fixed assets (£1,026) and current assets (£10,772) as of 2024 year-end, with current liabilities at £8,309. Net current assets stand positive at £2,982, providing a buffer for short-term obligations. However, the drop in net assets from £10,947 in 2023 to £2,297 in 2024 signals weakening equity, potentially from retained losses or increased accruals (£1,711). Share capital is minimal (£2), typical for micro-entities, so reliance on shareholder funds is limited. Overall financial strength is weak but not critical at present.

3. Cash Flow Assessment:
   Current assets exceed current liabilities by approximately £3,000, which is comfortable for a micro-business, indicating adequate liquidity to cover near-term debts. The increase in current liabilities from £4,404 in 2023 to £8,309 in 2024, alongside a stable current asset base, suggests working capital management needs attention. The absence of detailed profit and loss data restricts cash flow forecasting, but the positive net current assets provide reasonable short-term coverage.

4. Monitoring Points:

• Watch for continued erosion of net assets and equity; assess profitability once P&L accounts become available.
• Monitor changes in current liabilities and working capital to prevent liquidity strain.
• Track turnover growth and customer concentration given modest revenues.
• Review directors’ management actions and any potential changes in control.
• Confirm ongoing compliance with filing deadlines and absence of adverse legal or financial events.