Company Number: 14182685

Analysis Date: 2025-07-29 18:12 UTC

1. Credit Opinion: CONDITIONAL APPROVAL
   LJB Digital Ltd is a very young private limited company incorporated in mid-2022, operating in media representation services. It has maintained active status with no overdue filings and no audit requirements, indicative of a small entity. The company shows positive net current assets but with a marked decline from £2,036 in 2023 to £724 in 2024. Current liabilities have doubled year-on-year, mainly due to increased tax and social security liabilities. The absence of employees and director loans suggests a lean operation but also limited operational scale. Given the small scale, modest net assets, and rising liabilities, credit facilities may be approved conditionally, subject to monitoring of liquidity and working capital trends and clear purpose/use of funds.

2. Financial Strength:
   The balance sheet shows net assets of £724 in 2024 down from £2,036 in 2023, reflecting a shrinking equity base. Current assets increased to £15,434, largely driven by higher debtors (£11,781), but cash remains low at £3,653, stable from prior year. Current liabilities rose sharply to £14,710, primarily due to tax and social security accruals, which raises concern over short-term obligations. The company does not hold fixed assets or long-term liabilities, indicating limited capital investment and possibly constrained asset base. Overall, the financial strength is weak to moderate, with a tight working capital situation and limited equity buffer.

3. Cash Flow Assessment:
   Cash balances are low and flat (£3,653 vs £3,660 prior year), indicating constrained liquidity. Debtors have doubled, which could strain cash flow if collections are slow. The company’s net current assets are positive but marginal (£724), and the doubling of current liabilities, especially tax and social security, could pressure liquidity. No employees reduce payroll burden but also limit operational scale. Lack of director loans and no external debt indicate no current dependency on insider funding or bank borrowings. Cash flow risks are elevated; working capital management and timely debtor collections are critical.

4. Monitoring Points:

• Monitor evolution of current liabilities, especially tax/social security accruals, to ensure they do not outpace asset growth.
• Track debtor aging and cash conversion cycles to manage liquidity risk.
• Watch net asset and shareholder funds trends for signs of depletion or capital injections.
• Review any changes in operating scale or business model that may affect risk profile.
• Confirm payment history on any credit facilities or trade payables.