LAV DIGITAL LTD

Executive Summary

LAV DIGITAL LTD presents a low risk profile based on its improving financial position, strong net current assets, and compliance with regulatory filings. The main area for further review is the nature of its long-term liabilities and operational dependency on a single director. Overall, the company appears solvent and liquid with stable micro-entity scale operations in the IT services sector.

LAV DIGITAL LTD - Analysis Report

Company Number: 13106239

Analysis Date: 2025-07-20 13:09 UTC

1. Risk Rating: LOW
   LAV DIGITAL LTD demonstrates solid financial footing with positive net assets, strong net current assets, and no overdue filings. Its micro-entity status and consistent growth in net assets over the last four years suggest low immediate solvency or liquidity risk.

2. Key Concerns:

• The company carries a significant creditor balance falling due after one year (£38,721 as of 2023), which warrants review to understand the nature and terms of this long-term liability.
• Share capital is minimal (£1.00), which is normal for micro companies but means equity cushion relies heavily on retained earnings and reserves.
• The company operates with a single employee/director, which may pose operational continuity risks and dependency on key personnel.

3. Positive Indicators:

• Net current assets increased substantially from £54,913 (2022) to £90,520 (2023), indicating improved short-term liquidity.
• Net assets almost doubled from £58,826 (2022) to £101,045 (2023), evidencing strong balance sheet growth.
• No overdue accounts or confirmation statements; compliance with filing deadlines is up to date.
• The company has been consistently active since incorporation in 2020 and reports stable operations in information technology-related SIC codes.

4. Due Diligence Notes:

• Investigate the terms, interest rates, and repayment schedule of the long-term creditors (£38,721) to assess potential solvency impact.
• Review cash flow statements if available to confirm liquidity beyond balance sheet snapshot.
• Understand the business model and client base given only one employee/director to evaluate operational sustainability and growth prospects.
• Confirm absence of director conduct issues or regulatory compliance flags beyond the publicly available data.