DIGITALTECH CONSULT LIMITED

Executive Summary

Digitaltech Consult Limited displays substantial solvency and liquidity weaknesses characterized by large current liabilities relative to minimal current assets and no operational staff. While statutory compliance is maintained and governance appears stable, the company’s financial position raises concerns about its ability to meet obligations and sustain operations. Further investigation into the deferred income accounting and business viability is recommended before considering investment.

DIGITALTECH CONSULT LIMITED - Analysis Report

Company Number: 13593856

Analysis Date: 2025-07-20 14:30 UTC

1. Risk Rating: HIGH
   The company exhibits significant liquidity and solvency concerns, with current liabilities substantially exceeding current assets and persistent negative net current assets over multiple years. The micro-entity scale and absence of employees indicate limited operational scale, raising concerns about operational stability.

2. Key Concerns:

• Liquidity Deficit: Current liabilities (£8,130) are over 30 times greater than current assets (£250) as of 2024, indicating severe short-term cash flow constraints.
• Persistent Negative Net Current Assets: Negative net current assets since incorporation except for a reported positive net assets figure which appears inconsistent and likely influenced by deferred income accruals, suggesting potential balance sheet distortions.
• Lack of Operational Activity: Zero employees and minimal current assets imply limited ongoing business operations or revenue generation, raising sustainability questions.

3. Positive Indicators:

• Compliance: All statutory filings including accounts and confirmation statements are up to date with no overdue filings or penalties.
• Director and PSC Stability: Single director and 100% shareholder are consistent, with no indications of director disqualifications or governance issues.
• Micro-Entity Reporting: Use of micro-entity reporting framework reduces administrative burden, appropriate for small scale.

4. Due Diligence Notes:

• Clarify composition and nature of accruals and deferred income (£14,549) which offset liabilities and result in positive shareholders’ funds despite negative net current assets.
• Investigate the source of funds or capital injections supporting the company given minimal assets and ongoing liabilities.
• Assess business model viability given no staff and very low asset base, including revenue streams, client contracts, or reliance on director’s external resources.
• Review any off-balance-sheet liabilities or related party transactions involving the sole director/PSC.