DIGITECHSOURCING LTD

Executive Summary

Digitechsourcing Ltd is a micro-entity with modest financial strength and positive working capital, showing a small but improving equity base. The company demonstrates sound financial stewardship with no overdue filings and manageable short-term liabilities. Given its size, credit exposure should remain limited and closely monitored for cash flow and profitability developments.

DIGITECHSOURCING LTD - Analysis Report

Company Number: 14156177

Analysis Date: 2025-07-29 16:16 UTC

1. Credit Opinion: CONDITIONAL APPROVAL Digitechsourcing Ltd is a very small micro-entity, newly incorporated in 2022 and operating in the employment placement agency sector. The company shows positive net current assets and net equity, indicating a minimal but positive financial buffer. However, the absolute scale of the company is very small with current assets of only £1,160 and net assets of £1,050 as of June 2024. The business has a stable but limited financial base and only two employees on average. Given the size and limited financial history, credit exposure should be modest and carefully monitored. The company appears to have sound financial stewardship with timely filings and no overdue accounts.

2. Financial Strength: The balance sheet shows net current assets of £1,050 and net assets of the same amount as of 30 June 2024. Current liabilities are low at £110, giving a good short-term solvency position. The company’s net assets increased from £737 in the prior year to £1,050, which is a positive sign, although the amounts remain very small. There are no fixed assets reported, and the company relies on current assets (likely cash or receivables). The shareholder funds reflect the equity invested or retained earnings and show a slight improvement year-on-year. Overall, the financial strength is weak due to size but acceptable for micro-entity scale.

3. Cash Flow Assessment: Liquidity appears adequate with current assets exceeding current liabilities by £1,050. The positive working capital indicates the company can meet short-term obligations. However, the very small absolute cash and asset base limit the capacity to absorb financial shocks or cover unexpected expenses. There is no detailed cash flow statement provided, but the positive net current assets and absence of overdue creditors suggest manageable short-term cash flows. The small employee base also suggests limited payroll pressure.

4. Monitoring Points:

• Monitor turnover and profitability trends as these are not disclosed but critical for cash generation.
• Watch any increases in current liabilities or delayed payments which could strain liquidity.
• Observe any changes in director appointments or governance, especially after the resignation of the initial director in May 2023.
• Keep an eye on the scale of business growth and whether working capital expands proportionally.
• Review future filings for any audit or financial statement changes as the company grows beyond micro thresholds.