Company Number: 14590086

Analysis Date: 2025-07-20 16:06 UTC

1. Credit Opinion: CONDITIONAL APPROVAL
   Orrest Digital Limited is a micro-entity operating in the advertising agency sector, recently incorporated in early 2023. The company shows a very modest net asset base (£72 at 31 January 2025) after declining from £2,856 the previous year, indicating limited financial cushion. Current liabilities have grown significantly, nearly matching current assets, which reduces liquidity headroom. Given the small scale, minimal working capital, and lack of profitability data, credit exposure should be limited and closely monitored. Approval is conditional on low credit limits and prompt review of future filings and cash flow statements.

2. Financial Strength:
   The balance sheet reveals very limited equity and net assets at £72 as of the latest accounts. Current assets increased to £17,898, but current liabilities rose sharply to £17,826, resulting in negligible net current assets of £72. The company has no fixed assets, and its net asset value has eroded substantially over the last year. This thin capital base suggests low financial resilience and little buffer against setbacks or increased debts.

3. Cash Flow Assessment:
   The company's working capital position is effectively neutral, with current liabilities nearly matching current assets. Although current assets nearly doubled from the prior year, current liabilities increased by over three times, absorbing most available liquidity. The average employee count rose from 1 to 2, implying gradually increasing operational costs. Without detailed profit and loss data, it is difficult to assess operational cash flows, but the tight working capital position signals vulnerability to cash flow disruptions.

4. Monitoring Points:

• Watch subsequent accounts for improvement or further deterioration in net assets and working capital.
• Monitor payment behavior and any overdue liabilities to suppliers or tax authorities.
• Review directors’ reports for operational performance updates and business outlook.
• Track any changes in ownership or control that could affect governance or financial strategy.
• Assess cash flow statements when available to confirm operational liquidity and debt servicing capability.