Company Number: NI684442

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

1. Risk Rating: LOW
   Digital Worldwide Trading Ltd shows a positive net current asset position with no overdue filings and a controlling shareholder who is also the director. The company is small and relatively new but currently demonstrates sufficient short-term solvency and regulatory compliance.

2. Key Concerns:

• Lack of operational scale and employees: No employees reported and micro-entity status limits financial disclosure, which may mask operational risks or revenue generation capability.
• Concentration of control: The sole director and 100% shareholder is the same individual, which can increase governance risk and reduce checks and balances.
• Limited financial history: The company has only two full years of financial data, with significant growth in current assets in the latest year that should be validated for sustainability.

3. Positive Indicators:

• Strong liquidity position: Current assets (£138k) significantly exceed current liabilities (£73k) as of 2023, indicating ability to meet short-term obligations.
• Good regulatory standing: No overdue accounts or confirmation statement filings, suggesting compliance with Companies House requirements.
• Clear industry focus: Operating in wholesale electronics and telecommunications equipment, with an active website and contact information, supporting ongoing commercial activity.

4. Due Diligence Notes:

• Verify the nature and sustainability of the increase in current assets in 2023—specifically the composition (cash, receivables, inventory).
• Review any related-party transactions or financial support from the controlling shareholder.
• Assess the company's business model in the absence of employees and confirm how operations are managed (outsourcing, automation, etc.).
• Confirm absence of director disqualifications or adverse conduct records for Mr. Sohail Ahmad.
• Consider reviewing bank statements and cash flow statements, if available, to ensure liquidity is not overstated.