DIGITAL WORLDWIDE TRADING LTD

Executive Summary

Digital Worldwide Trading Ltd exhibits a solid short-term financial position and regulatory compliance consistent with a low-risk profile. However, the company’s small scale, concentrated ownership, and limited operating history warrant further examination to validate operational sustainability and cash flow reliability. Overall, it appears solvent and compliant but requires additional due diligence on asset quality and governance.

DIGITAL WORLDWIDE TRADING LTD - Analysis Report

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.