DIGIDATA COMPUTING LIMITED

Executive Summary

Digidata Computing Limited shows some liquidity adequacy but faces medium solvency risk due to a steep rise in long-term liabilities and reduction in net assets. Operational sustainability is unclear with no employees reported in the latest period. While compliance filings are up to date, further investigation into creditor terms and business viability is recommended before investment consideration.

DIGIDATA COMPUTING LIMITED - Analysis Report

Company Number: 14397603

Analysis Date: 2025-07-29 13:44 UTC

1. Risk Rating: MEDIUM

Justification: The company is relatively new (incorporated in late 2022) and small (micro-entity classification). Net assets have declined sharply from £25,362 in 2023 to £3,260 in 2024, primarily due to a significant increase in long-term creditors (from £20,526 to £57,877). While current assets exceed current liabilities, the rise in non-current liabilities poses solvency concerns. No audit has been carried out, limiting financial transparency.

2. Key Concerns:

• Sharp increase in creditors falling due after more than one year (long-term liabilities) from £20,526 to £57,877 within one year, reducing net equity and potentially impairing solvency.
• Significant drop in shareholders’ funds and net assets in the latest financial year, indicating possible financial distress or increased leverage.
• Zero employees reported in 2024 compared to one in 2023, which may raise questions about operational sustainability and business activity.

3. Positive Indicators:

• Current assets exceed current liabilities in both years, with net current assets improving from £45,888 to £61,137, suggesting reasonable short-term liquidity.
• The company remains active with no overdue filings for accounts or confirmation statements, indicating compliance with statutory requirements.
• Ownership and control are consolidated under a single director with a substantial stake, potentially allowing for streamlined decision-making.

4. Due Diligence Notes:

• Investigate the nature and terms of the increased long-term creditors to assess repayment obligations, interest costs, and potential refinancing risks.
• Review any underlying business activities or contracts that support the company’s ability to generate cash flow and service liabilities given the reduction in net assets.
• Confirm the absence of audit or independent review and consider requesting management accounts or additional financial information to evaluate financial health.
• Assess why the company has no employees in the latest period and determine if the business is operational or reliant on outsourcing/contractors.
• Verify director background and any related-party transactions given the high concentration of control and recent director appointment.