MOTIF DIGITAL LIMITED

Executive Summary

Motif Digital Limited exhibits a significant deterioration in financial position in 2023, with negative working capital and shareholders’ funds raising substantial solvency and liquidity risks. While regulatory compliance and group ownership provide some mitigating factors, the company’s financial sustainability appears challenged without further capital or operational improvements. Further detailed financial and group relationship analysis is recommended to assess ongoing viability.

MOTIF DIGITAL LIMITED - Analysis Report

Company Number: 12991677

Analysis Date: 2025-07-20 14:30 UTC

1. Risk Rating: HIGH
   Motif Digital Limited displays significant solvency concerns with negative net current assets and shareholders’ funds as of the latest accounts. The sharp deterioration in working capital and equity over one year indicates a high risk of financial distress.

2. Key Concerns:

• Negative Net Current Assets: The company moved from a strong positive net current asset position (£20,578 in 2022) to a negative balance (£-1,656 in 2023), indicating potential liquidity stress.
• Negative Shareholders’ Funds: Shareholders’ funds swung from £22,041 positive in 2022 to £-1,681 negative in 2023, suggesting accumulated losses or write-downs that erode the company’s net worth.
• High Reliance on Group Debtors: The majority of debtors in 2023 (£9,292 of £9,327) are amounts owed by group undertakings, which may pose collection risk if the parent or affiliates face financial issues.

3. Positive Indicators:

• Compliance with Filing Requirements: The company is up to date with both accounts and confirmation statement filings, showing regulatory compliance and good governance practices.
• Established Group Control: Controlled by Deploy Productions Holding Limited with 75-100% ownership, which may provide strategic support or capital injections if necessary.
• Small Employee Base: With only 2 employees, the company’s cost base is likely low, limiting operational overheads.

4. Due Diligence Notes:

• Investigate the causes behind the sharp decline in net current assets and shareholders’ funds during 2023. Review the profit and loss details if available, as these are not included in the filed accounts.
• Assess the collectability and nature of amounts owed by group undertakings to understand intercompany risk and cash flow implications.
• Confirm whether there are any contingent liabilities or overdue tax/VAT payments given the increase in social security and VAT creditors.
• Review the company’s business model sustainability and future revenue streams given the financial deterioration.
• Consider the financial health of the parent company Motif Holdings Group Limited and Deploy Productions Holding Limited to gauge group support capacity.