DIGITAL DRUIDS LTD

Executive Summary

DIGITAL DRUIDS LTD demonstrates steady but modest financial health with positive working capital and no compliance issues, supporting a cautious credit approval. The company’s small scale and limited capital base require careful monitoring of liquidity and liabilities to ensure ongoing repayment capability. Overall, the business appears stable but should be extended credit conservatively.

DIGITAL DRUIDS LTD - Analysis Report

Company Number: 12836602

Analysis Date: 2025-07-20 16:27 UTC

1. Credit Opinion: APPROVE with caution. DIGITAL DRUIDS LTD is a micro-entity with stable but modest net current assets and net assets increasing slightly year on year. The company shows consistent positive working capital and no overdue filings, indicating responsible management and compliance. However, the scale is small, and financial buffers are limited, so credit facilities should be modest and carefully monitored.

2. Financial Strength: The company’s balance sheet shows net current assets of £3,257 as of 31 August 2024, up from £2,667 in the prior year, reflecting a small but positive improvement. Total net assets equal shareholders' funds at £3,257, indicating no long-term liabilities and a clean balance sheet typical of a micro-entity. The share capital is nominal (£100), and the company is entirely controlled by one director with 75-100% ownership. The financial position is sound for its size but limited in scale and capital base.

3. Cash Flow Assessment: Current assets are just above current liabilities (£49,237 vs. £45,980), providing a narrow working capital margin. The company maintains positive net current assets, which suggests it can meet short-term obligations as they fall due. However, the small magnitude of these amounts implies limited liquidity buffers. The consistent employee count of one and micro-entity status suggest low fixed costs, which may help maintain liquidity even with tight margins.

4. Monitoring Points:

• Monitor working capital trends closely to detect any deterioration in liquidity.
• Watch for any increase in current liabilities that could strain short-term cash flow.
• Review subsequent filings to confirm continued compliance and financial stability.
• Assess business performance and revenue growth since limited financial data is available.
• Monitor director and shareholder conduct given single-person control.