DEEPDIVE LTD

Executive Summary

Deepdive Ltd is a micro entity with a strong equity base and positive working capital in its first year of trading, indicating adequate short-term financial health. With no debt and full control by an experienced director, the company currently presents low credit risk. Approval is recommended with routine monitoring of financial growth and liquidity metrics to ensure ongoing creditworthiness.

DEEPDIVE LTD - Analysis Report

Company Number: 14722369

Analysis Date: 2025-07-20 15:50 UTC

1. Credit Opinion: APPROVE
   Deepdive Ltd is a newly incorporated micro private limited company operating in the advertising agency sector. The company shows a positive net asset position of approximately £69k and positive working capital, indicating an ability to meet short-term liabilities. The sole director and 100% shareholder appears to have full control, which simplifies governance but concentrates risk. Given the company’s micro status, initial financials are modest but sound. There is no evidence of financial distress or overdue filings. Credit approval is recommended with standard monitoring given the early stage of trading and limited financial history.

2. Financial Strength:
   The balance sheet shows fixed assets of £48k and current assets of £48k against current liabilities of £27k, yielding net current assets of £20k and net assets of £69k. The company’s equity base is solid relative to its size, supported entirely by shareholders’ funds. The absence of external debt or long-term liabilities reduces financial risk. The financial structure is stable for a first-year micro entity, but scale is limited.

3. Cash Flow Assessment:
   Current assets largely represent liquid or near-liquid assets, and working capital is positive at £20k, indicating sufficient short-term liquidity to cover liabilities. The company’s one employee structure suggests low overheads. Cash flow should be monitored closely as the company grows to ensure it sustains operational expenses and any credit facility repayments.

4. Monitoring Points:

• Track turnover and profitability development in subsequent financial periods to assess operational viability.
• Monitor working capital trends and creditor days to ensure liquidity remains comfortable.
• Review any new debt or credit lines to evaluate leverage and repayment capacity.
• Observe director changes or PSC updates that may signal governance shifts.
• Watch for timely filing of accounts and confirmation statements to avoid compliance risk.