DIGITAL GAFF LTD

Executive Summary

Digital Gaff Ltd shows improving financial health with an increase in net assets and positive working capital as of March 2024. Liquidity has strengthened with cash reserves covering current liabilities, but limited operational data warrants conditional credit approval. Continued monitoring of cash flow generation and tax obligations is advised to ensure ongoing creditworthiness.

DIGITAL GAFF LTD - Analysis Report

Company Number: 13011583

Analysis Date: 2025-07-20 11:44 UTC

1. Credit Opinion: CONDITIONAL APPROVAL
   Digital Gaff Ltd demonstrates a stable and improving financial position with net assets increasing to £49,518 as of March 2024 from £46,614 the prior year. The company has positive working capital of £7,052 in 2024 compared to negative working capital in previous years, indicating improved liquidity and a better ability to meet short-term obligations. However, the absence of turnover and profit & loss details limits full visibility on operational cash flow generation. Conditional approval is recommended with a requirement for monitoring ongoing cash flow and profitability.

2. Financial Strength:
   The balance sheet shows a modest but improving financial footing. Fixed assets stand at £42,466, primarily motor vehicles and computer equipment, with accumulated depreciation accounted for prudently. Shareholders’ funds have grown steadily, reflecting retained earnings supporting the company’s net asset base. Current liabilities have decreased from £33,431 in 2023 to £22,943 in 2024, improving solvency ratios. The company remains a micro entity based on the financial thresholds, which generally implies simpler operations and lower risk profile.

3. Cash Flow Assessment:
   Cash at bank increased slightly to £29,995, supporting liquidity. Net current assets turned positive after two years of negative working capital, suggesting better working capital management or reduced short-term debt. The company’s current liabilities consist mainly of taxation and social security liabilities, which appear to be managed within available current assets. The absence of detailed profit and loss statement constrains a thorough cash flow forecast, so attention to cash generation from operations is critical.

4. Monitoring Points:

• Track turnover and profitability trends in upcoming accounts to ensure operational cash flow covers debt servicing.
• Monitor working capital management to sustain positive net current assets and avoid liquidity strains.
• Review tax liabilities to ensure timely payments and avoid enforcement risks.
• Observe asset utilization and depreciation policies for any impairment risks given the fixed asset base.
• Watch for any changes in director appointments or ownership that may affect governance or operational control.