DIGITAL EDGE SERVICES LTD

Executive Summary

DIGITAL EDGE SERVICES LTD faces immediate financial challenges evidenced by negative net assets and a minimal asset base, raising significant solvency and liquidity concerns. While regulatory compliance is maintained, the company's early-stage status and limited operational scale suggest high risk without further information on funding or business viability. Further due diligence on liabilities and business planning is required to evaluate investment suitability.

DIGITAL EDGE SERVICES LTD - Analysis Report

Company Number: 14858556

Analysis Date: 2025-07-29 19:54 UTC

1. Risk Rating: HIGH
   The company shows a significant solvency concern as its net current assets and net assets are negative (-£4,525), indicating liabilities exceed current assets. This financial position suggests difficulty meeting short-term obligations.

2. Key Concerns:

• Negative net current assets of £-4,525 implying liquidity issues and potential inability to cover current liabilities.
• The company is newly incorporated (2023-05) with only one employee, which raises questions about operational scale and business sustainability.
• The financial statements show no fixed assets and very limited current assets (£840), indicating minimal operational capital or investment.

3. Positive Indicators:

• The company is compliant with filing deadlines for accounts and confirmation statements, showing good regulatory adherence.
• Ownership is concentrated with a single Person with Significant Control (PSC) holding 75-100% shares and voting rights, which may allow for decisive governance and streamlined decision-making.
• The company is classified as a micro-entity, which is consistent with its size and filing exemption status.

4. Due Diligence Notes:

• Investigate the nature of the current liabilities (£5,365) and the terms of repayment to assess immediate solvency risk.
• Clarify the business model, revenue streams, and cash flow projections given the minimal asset base and negative net assets.
• Review director backgrounds and any potential personal guarantees or external funding sources supporting the company’s operations.
• Since the company is newly formed, assess the strategic plan for growth and sustainability beyond the initial period.