DECILLION DIGITAL LIMITED

Executive Summary

Decillion Digital Limited, a micro-entity, demonstrates steady financial improvement with positive working capital and growing net assets, supporting a credit approval with conditions. While liquidity appears adequate, the small scale and limited operational breadth necessitate close monitoring of cash flow and business continuity risks. Continued financial progress and stable management oversight will be key to maintaining creditworthiness.

DECILLION DIGITAL LIMITED - Analysis Report

Company Number: 13104508

Analysis Date: 2025-07-20 12:51 UTC

1. Credit Opinion: APPROVE with conditions.
   Decillion Digital Limited shows a positive trajectory in net assets and net current assets over the last four years, indicating improving financial stability. The company is classified as a micro-entity with modest but growing working capital, which supports its short-term obligations. However, its small scale and limited employee base (average of 1 employee in 2024) suggest limited operational resilience. Approval is recommended contingent on continued monitoring of cash flow and operating performance due to the company's nascent stage and relatively low capitalization.

2. Financial Strength:
   The balance sheet reveals steady growth in net assets from £1,195 in 2020 to £11,571 in 2024. Current assets increased from £1,475 to £52,328, while current liabilities also rose but remain covered comfortably by current assets, resulting in positive net current assets (£11,571). The absence of fixed assets limits collateral value but is typical for service-oriented micro businesses. Shareholders' funds have increased correspondingly, reflecting retained earnings or capital injections. Overall, the financial position is sound for the company’s size, but the scale remains modest.

3. Cash Flow Assessment:
   Working capital is positive and improving, indicating liquidity is sufficient to meet short-term liabilities. The company has more than adequate current assets relative to creditors due within one year, minimizing immediate liquidity risk. However, the extremely small workforce and micro account classification imply cash flow could be vulnerable to business disruptions. No audit was conducted, and profit/loss details are not provided, so cash flow quality should be assessed further via management accounts or bank statements if available.

4. Monitoring Points:

• Continued growth in net current assets and net assets to confirm ongoing financial improvement.
• Cash flow consistency and ability to generate operating cash to support obligations.
• Impact of limited employee base on operational capacity and risks related to key person dependency.
• Any significant increases in liabilities or delays in filing statutory returns.
• Changes in director or shareholder structure, particularly monitoring the new director appointed in 2024.