DIGITAL EDGE PRINT GROUP LTD

Executive Summary

DIGITAL EDGE PRINT GROUP LTD demonstrates solid financial health with steadily increasing net assets and positive working capital, reflecting operational soundness. However, a recent dip into negative current assets signals a potential liquidity concern that requires prompt investigation. With targeted cash flow management and ongoing financial vigilance, the company is well-positioned to sustain its growth trajectory and financial stability.

DIGITAL EDGE PRINT GROUP LTD - Analysis Report

Company Number: 12816957

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

Financial Health Assessment of DIGITAL EDGE PRINT GROUP LTD

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1. Financial Health Score: B

Explanation:
The company exhibits generally sound financial health with stable net assets growth and positive working capital, indicating a healthy financial "heartbeat." However, the recent negative current assets figure in 2024 is a slight "symptom" that warrants careful monitoring to avoid potential liquidity issues. Overall, the company is financially stable but should address short-term asset concerns to maintain robustness.

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2. Key Vital Signs

Metric	2024 Value (£)	Interpretation
Fixed Assets	10,293	Stable long-term investments; slight increase over years reflects measured asset growth.
Current Assets	-278	Negative value is a concerning "symptom," suggesting potential short-term liquidity strain.
Current Liabilities	4,825	Reduced compared to prior year, easing short-term debt burden.
Net Current Assets	4,547	Positive working capital indicating ability to cover short-term obligations comfortably.
Total Assets Less Current Liabilities	14,840	Solid asset base after accounting for short-term debts, showing financial resilience.
Net Assets (Equity)	13,940	Growing shareholders’ funds demonstrate retained earnings and business value increase.
Share Capital	1.00	Nominal share capital typical of micro-entities; equity mainly from reserves and profits.
Average Employees	2	Small team size consistent with micro-entity status, implying lean operations.

Interpretation of Vital Signs:

• The company has built a healthy asset base over time, with net assets increasing from £2,816 in 2020 to £13,940 in 2024, indicating profitability and retained earnings growth.
• Positive net current assets across years indicate generally good short-term financial health, except the negative current assets figure in 2024, which may be a timing or reporting anomaly but should be investigated.
• The reduction in current liabilities and stable fixed assets point to prudent financial management.

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3. Diagnosis

The financial "vital signs" of DIGITAL EDGE PRINT GROUP LTD suggest a business in generally good health with a growing equity base and adequate working capital. The company appears to be maintaining a stable operational footing within its niche of printing services.

Symptoms of distress are minimal but the negative current assets figure for 2024 signals a potential liquidity concern or accounting timing difference that should be clarified. Such a symptom, if persistent, could indicate cash flow tightening or issues in collecting receivables—both critical to monitor closely.

No signs of over-leverage or asset impairment are evident. The company’s small size and micro-entity status imply simplified reporting but also a lean operational model that may be sensitive to cash flow fluctuations.

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4. Recommendations

• Investigate Negative Current Assets: Review the composition of current assets for 2024 to identify if the negative figure arises from accounting entries, delayed receivables, or stock valuation issues. Address promptly to avoid liquidity "arrhythmias."
• Enhance Cash Flow Monitoring: Implement more rigorous cash flow forecasting and debtor management to ensure sufficient liquidity to meet obligations.
• Maintain Asset Efficiency: Continue prudent control over fixed assets and avoid over-investment to conserve cash in the short term.
• Build Financial Reserves: Aim to increase retained earnings to buffer against unexpected expenses or market downturns, promoting long-term financial "immune strength."
• Regular Financial Reviews: Conduct periodic reviews of financial statements and operational metrics to detect early signs of distress and adapt strategies accordingly.
• Consider Growth Opportunities Carefully: Given the stable but modest financial scale, evaluate expansion initiatives cautiously to prevent overextension.

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