OWN DIGITAL LTD

Executive Summary

OWN DIGITAL LTD has demonstrated a significant turnaround from financial distress to a more stable footing with positive net assets and working capital as of January 2024. While the company’s finances remain modest and vulnerable, the improved liquidity provides a healthier foundation. Focused efforts on strengthening cash reserves, increasing capital, and prudent cost control will be essential to sustain and build upon this recovery.

OWN DIGITAL LTD - Analysis Report

Company Number: 13136513

Analysis Date: 2025-07-29 20:53 UTC

Financial Health Assessment: OWN DIGITAL LTD (as of 31 January 2024)

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1. Financial Health Score: C

Explanation: OWN DIGITAL LTD shows a significant improvement in its financial position over the latest year, moving from negative net assets to positive net assets. However, the overall financial scale is very small, with limited working capital and minimal share capital. This indicates early-stage recovery but ongoing vulnerability. The company is not yet robust enough to earn a higher grade.

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2. Key Vital Signs

Metric	2024 Value	Interpretation
Current Assets	£8,721	Healthy increase from £1,158; indicates improved liquidity.
Current Liabilities	£4,856	Reduced from £8,920; shows better short-term debt management.
Net Current Assets	£3,865	Positive working capital; the company can cover short-term debts.
Net Assets (Shareholders' Funds)	£3,865	Turned positive from negative £7,762 last year; balance sheet strengthening.
Share Capital	£1.00	Minimal capital base; typical for micro-entities but limits financial cushion.
Average Employees	0	No employees; may indicate reliance on director or outsourcing.

• Liquidity: The jump to positive net current assets signals a healthier "pulse"—the company now appears able to meet short-term obligations without distress.
• Solvency: Shift from negative to positive net assets is a good sign of "recovery," but the absolute figures remain small, requiring caution.
• Size and Scale: As a micro entity with minimal assets and no employees, financial resilience is limited.

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3. Diagnosis

Overall Condition: OWN DIGITAL LTD has shown a marked improvement in its financial "vital signs" over the last year, transitioning from a state of distress (negative net assets and working capital) to a more stable and solvent position. This suggests effective management efforts to reduce liabilities and increase current assets, possibly through better cash flow or debt restructuring.

However, the company's "circulatory system" (cash and working capital) remains fragile, with limited capital and no workforce, which could constrain its ability to scale operations or absorb shocks. The lack of audit and micro-entity reporting standards indicate simplicity but also less rigorous financial scrutiny.

The director holds full ownership and control, which can be a strength for swift decision-making but also concentrates risk.

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4. Recommendations

To strengthen financial wellness and support sustainable growth, the following steps are advised:

1. Build Cash Reserves: Continue to improve liquidity buffers to avoid "cash flow fatigue," ensuring enough cash to cover at least 3-6 months of operating expenses.

2. Increase Capital Base: Consider injecting additional share capital or securing external financing to enhance the financial cushion and fund growth initiatives.

3. Diversify Revenue Streams: Explore new business opportunities or clients within advertising and web portals to stabilize and increase income.

4. Cost Management: Maintain vigilant control over liabilities and operating costs, especially given no employees, to preserve positive working capital.

5. Prepare for Scaling: Plan for potential hiring or outsourcing needs to support operational expansion while monitoring financial capacity.

6. Regular Financial Reviews: Implement quarterly financial health checks to catch early symptoms of distress and respond proactively.

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