LIBRA VENTURES DIGITAL LTD

Executive Summary

Libra Ventures Digital Ltd is a micro-entity start-up with a modest but positive financial base, showing sound initial capitalization and liquidity. While credit approval is viable, the company’s limited operating history and scale require cautious exposure and ongoing monitoring of cash flow and trading performance. Early signs suggest financial prudence but operational data will be critical to confirm long-term creditworthiness.

LIBRA VENTURES DIGITAL LTD - Analysis Report

Company Number: 14628654

Analysis Date: 2025-07-29 15:56 UTC

1. Credit Opinion: APPROVE with caution. Libra Ventures Digital Ltd is a newly incorporated micro-entity with a clean financial position and no overdue filings. The company’s current low liabilities and positive net assets indicate initial soundness. However, being in the first year of operation with minimal financial history and limited fixed assets, it carries inherent start-up risk. Credit approval is recommended with monitoring and possibly limited facility size until operational cash flow and profitability become evident.

2. Financial Strength: The balance sheet shows total net assets of £4,840, consisting wholly of current assets (£5,975) less current liabilities (£1,135). No fixed assets or long-term liabilities are recorded. Shareholders’ funds match net assets, reflecting initial equity investment. The micro-entity status and small scale limit financial depth, but the absence of debt and positive working capital demonstrate prudent initial capitalisation. The company’s financial structure is simple and stable for its size and age.

3. Cash Flow Assessment: Cash and equivalents are implied within current assets of £5,975, supporting liquidity to cover short-term liabilities of £1,135 comfortably. Net current assets of £4,840 indicate positive working capital. With only two employees on average, operating costs are likely low. However, no historical profit or cash flow statement is available to assess ongoing operational cash generation. Early stage status necessitates close monitoring of cash burn and revenue inflows.

4. Monitoring Points:

   • Track ongoing cash flow and operational profitability as the company matures.
   • Review quarterly management accounts to assess revenue growth and expense control.
   • Monitor directors’ continuation and any changes in ownership/control structure.
   • Watch for timely filing of future accounts and confirmation statements.
   • Evaluate any increase in liabilities or capital expenditure that might affect liquidity.