DIGITAL ONEZEROONE LTD

Executive Summary

Digital Onezeroone Ltd exhibits high financial risk due to sustained negative net assets, growing current liabilities, and explicit going concern doubts by management. While regulatory filings are current and governance is straightforward, the company’s liquidity position and operational viability require urgent scrutiny. Further investigation into cash flows and remedial plans is essential before considering investment.

DIGITAL ONEZEROONE LTD - Analysis Report

Company Number: 13666549

Analysis Date: 2025-07-29 18:13 UTC

1. Risk Rating: HIGH
   The company shows negative net assets and shareholders' funds for the last three years, with increasing net current liabilities and a material uncertainty noted by the director regarding going concern. These factors indicate significant solvency and liquidity challenges.

2. Key Concerns:

• Persistent negative net assets: The company’s shareholders’ funds deteriorated from -£332 in 2023 to -£512 in 2024, indicating accumulated losses and erosion of equity.
• Liquidity strain: Current liabilities exceed current assets by £412 as of 2024, with minimal cash reserves (£64), suggesting difficulty meeting short-term obligations.
• Going concern uncertainty: The director explicitly disclosed material uncertainties about the company’s ability to continue operating, which raises operational and financial stability concerns.

3. Positive Indicators:

• Compliance: The company’s accounts and confirmation statements are filed on time with no overdue filings, suggesting good regulatory compliance.
• Ownership and control: The sole director and 75-100% shareholder are clearly identified, implying clear governance structure.
• Small scale: With only one employee and modest operational scope, the company’s cost base may be limited, potentially manageable if revenue improves.

4. Due Diligence Notes:

• Review detailed cash flow statements or management accounts to assess current liquidity and operating cash generation, if available.
• Investigate the nature and cause of the losses leading to negative equity, including any write-offs or unusual expenses.
• Clarify the director’s plans or external support to address the going concern issues and return the company to profitability.
• Confirm the status and terms of the director’s account creditor balance (£476k), as this is a significant liability.
• Assess any contingent liabilities or off-balance sheet commitments that may exacerbate financial risk.