DIGITAL INX GROUP LIMITED

Executive Summary

DIGITAL INX GROUP LIMITED shows early-stage financial health with positive but minimal net assets and tight liquidity. The key concern is overdue statutory accounts filing, which poses regulatory risk. Strengthening compliance, building working capital, and monitoring cash flow are critical for sustainable growth.

DIGITAL INX GROUP LIMITED - Analysis Report

Company Number: 14213570

Analysis Date: 2025-07-29 20:01 UTC

Financial Health Assessment Report for DIGITAL INX GROUP LIMITED

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1. Financial Health Score: C

Explanation:
This score reflects a business with minimal financial activity but currently maintaining a positive net asset position and modest working capital. However, the company shows symptoms of early-stage financial fragility due to low capital base, presence of liabilities near the level of current assets, and overdue filing status. It is not in distress but requires careful monitoring and proactive management to ensure sustainability.

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2. Key Vital Signs

Metric	Value	Interpretation
Account Category	Micro	Smallest size company with minimal filing requirements; limited financial data available.
Share Capital	£100	Very low initial equity, indicating limited invested capital.
Fixed Assets	£0	No long-term assets such as property or equipment; asset base entirely current assets.
Current Assets	£30,635	Cash and short-term receivables available to meet liabilities.
Current Liabilities	£28,034	Debts and payables due within one year, nearly matching current assets.
Net Current Assets	£2,601	Positive but slim working capital buffer; indicates liquidity is tight but not negative.
Net Assets	£2,601	Overall positive equity position but very low; limits resilience to shocks.
Average Employees	0	No reported employees, suggesting reliance on contractors or owner-director work.
Filing Status	Accounts overdue	Missed statutory accounts filing deadline; potential regulatory and reputational risk.

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3. Diagnosis

• Liquidity & Working Capital ("Healthy Cash Flow"): The company holds current assets slightly above current liabilities, providing a thin working capital margin (£2,601). This indicates the business can meet short-term obligations but with little buffer. The absence of fixed assets means there are no tangible long-term resources to leverage or sell in distress.

• Capitalization & Financial Stability ("Low Blood Pressure"): Shareholders’ funds of £2,601 on a micro company scale are minimal, reflecting early-stage equity. This low capital base reduces ability to absorb unexpected expenses or downturns.

• Operational Activity ("Symptoms of Start-up Phase"): No employees and a small asset base suggest the company is in an early or development stage, possibly focused on initial contracts or development rather than established operations.

• Compliance Risk ("Warning Sign"): The overdue accounts filing is a symptom of administrative or operational stress and could lead to penalties or increased scrutiny.

• Control & Governance: Single director and 100% ownership by Dean Fabian Terry indicates streamlined decision-making but also concentration risk if the director is unavailable or incapacitated.

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4. Recommendations

• Improve Compliance and Filing Practices: Immediate action to file overdue accounts to mitigate penalties and regulatory risk. Establish a robust calendar and reminders for future statutory deadlines.

• Build Financial Cushion: Seek to increase working capital by either injecting further equity or managing payables and receivables more efficiently. Even a small increase in net current assets will improve liquidity resilience.

• Plan for Asset Acquisition: Consider investing in fixed assets or intangible assets (IP, software) to build a more substantial asset base to support operations and borrowing capacity.

• Financial Monitoring & Forecasting: Implement monthly cash flow monitoring to anticipate potential liquidity issues early. Develop simple budgets and forecasts aligned with business plans.

• Assess Growth Strategy: The lack of employees and minimal capital suggests growth depends on owner/director effort or outsourcing. Evaluate whether hiring or partnerships could accelerate revenue generation.

• Risk Diversification: Consider spreading operational risk by diversifying customer base or exploring additional revenue streams to reduce concentration risk linked to a small operational footprint.

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Medical Analogy Summary:

DIGITAL INX GROUP LIMITED is currently exhibiting signs of early-stage business health with a "stable but fragile" cardiovascular system — it has a positive but narrow pulse of working capital and minimal financial reserves. The overdue accounts filing is a "fever" signaling stress that requires immediate treatment to avoid worsening complications. Strengthening the financial "immune system" through better liquidity management and compliance will improve overall business wellness and resilience.

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