DIGIFICATION LTD

Executive Summary

Digification Ltd exhibits low financial risk with improving net assets and sufficient liquidity, supported by timely compliance and stable management. However, limited scale and minimal disclosure under micro-entity provisions warrant further scrutiny of operational viability and earnings quality before investment. Overall, the company appears solvent and compliant but is a small, resource-light entity.

DIGIFICATION LTD - Analysis Report

Company Number: 13181386

Analysis Date: 2025-07-29 17:16 UTC

1. Risk Rating: LOW
   The company demonstrates a positive and improving net asset position, maintains a healthy net current asset surplus, and is up to date with statutory filings. The absence of employees and small scale operations limit complexity and operational risk.

2. Key Concerns:

• Limited scale and resources due to micro-entity status and zero employees may restrict operational capacity and growth potential.
• Small share capital (£10) indicates minimal equity buffer, although net assets have grown through retained reserves.
• Lack of audit and limited disclosure under micro-entity exemptions reduces transparency for investors seeking detailed financial insight.

3. Positive Indicators:

• Consistent increase in net assets and net current assets over the last three years indicates improving financial stability.
• Current assets comfortably exceed current liabilities, suggesting adequate short-term liquidity.
• Timely submission of accounts and confirmation statements indicates good regulatory compliance and governance discipline.
• Directors hold significant control and have been in position since incorporation, suggesting stable leadership.

4. Due Diligence Notes:

• Review the nature and source of the company’s retained earnings and cash flow to confirm sustainability of financial improvements.
• Assess the company’s business model and revenue streams given no employees and limited fixed assets to understand operational viability.
• Confirm absence of contingent liabilities or off-balance sheet obligations not disclosed in micro-entity filings.
• Investigate director backgrounds beyond Companies House data for any reputational or governance risks.