DIGITAL ASSETS INNOVATION LABS LTD

Executive Summary

DIGITAL ASSETS INNOVATION LABS LTD is a newly established micro-entity with a clean balance sheet and positive net current assets, showing early financial stability. The company’s small scale and limited trading history warrant modest credit allocations with ongoing monitoring of financial growth and liquidity. Overall, the credit risk is low at this stage, supporting an approval recommendation with prudent limits.

DIGITAL ASSETS INNOVATION LABS LTD - Analysis Report

Company Number: 14506399

Analysis Date: 2025-07-29 13:47 UTC

1. Credit Opinion: APPROVE
   DIGITAL ASSETS INNOVATION LABS LTD is a very young micro-entity private limited company incorporated in late 2022, with its first financial year ended November 2023. The company shows a positive net asset position of £19,416 and net current assets of £10,143, indicating a sound balance sheet for a micro business. It has no overdue filings, and the sole director has maintained good compliance. While the company is small and early stage with limited operating history, there is no indication of financial distress or governance issues. The credit risk is low given the modest size and absence of liabilities. Approval is recommended for credit facilities within reasonable limits reflecting the company’s scale and early development.

2. Financial Strength
   The company’s balance sheet shows total net assets of £19,416, comprising primarily current assets (£10,143) and fixed assets (£2,773). There are no reported current liabilities, which means working capital is positive and the company is not reliant on short-term debt. Shareholders’ funds equal net assets, reflecting no external borrowings or creditors. The called-up share capital not paid is £6,500, which may indicate some funds are committed but not yet received, a factor to monitor. Overall, the financial position is stable with a clean balance sheet and equity backing.

3. Cash Flow Assessment
   Current assets of £10,143 with net current assets equal to this figure suggest liquidity is sufficient to meet short-term obligations as of the last reporting date. The company employs only one individual, so operating overheads are likely low. Absence of current liabilities reduces pressure on cash flow. However, given the micro-entity status and early stage, cash flow generation capacity is limited and dependent on future business development. Monitoring receivables and cash inflows will be important to ensure ongoing liquidity.

4. Monitoring Points

• Track growth in turnover and profitability in subsequent accounts to gauge business trajectory and capacity to service credit.
• Monitor any increase in liabilities or delayed capital contributions that could affect liquidity.
• Review director and shareholder changes or any adverse compliance events.
• Assess cash flow statements when available to verify operational cash generation.
• Watch for any changes in the company’s business focus or name changes that could signal restructuring risk.