Company Number: 13886971

Analysis Date: 2025-07-20 16:47 UTC

1. Credit Opinion: APPROVE – DWG.IT LIMITED demonstrates a solid financial position for a micro-entity with a strong net asset base and positive working capital. The company has no overdue filings and is actively managed by a single director with full control. Given the absence of audit requirements (typical for micro-entities), limited financial disclosure restricts a full profitability assessment, but the balance sheet strength and liquidity metrics support credit approval for typical SME lending limits. No adverse director conduct or insolvency flags are noted.

2. Financial Strength: The company’s net assets have grown from £64k in 2022 to £133k in 2025, indicating stable equity growth and retained earnings. Fixed assets remain minimal (~£3.4k), consistent with a service-oriented office support business. Current assets have increased significantly (from £80k to £157k), while current liabilities have remained stable (~£24k), driving an improved net current asset position (£133k in 2025). The company carries no long-term liabilities, which reduces financial risk.

3. Cash Flow Assessment: Strong net current assets reflect good short-term liquidity and working capital adequacy. The current ratio is approximately 6.5x (current assets of £157k vs current liabilities of £24k), evidencing strong coverage of short-term obligations. This implies a comfortable cash buffer to meet operational expenses and debt servicing. The small employee base (2 persons) suggests limited fixed overhead costs, supporting cash flow stability.

4. Monitoring Points:

• Monitor profitability when profit and loss data become available, as current accounts omit this information.
• Track receivables and payables aging to ensure working capital quality remains high.
• Watch for any changes in director control or company status that could affect governance or business stability.
• Assess filing timeliness and compliance with statutory requirements annually to mitigate regulatory risk.