Company Number: 13619283

Analysis Date: 2025-07-29 15:52 UTC

1. Risk Rating: LOW
   Pact Digital Ltd demonstrates solid financial health with increasing net assets and strong net current assets. The company is compliant with filing deadlines and shows no signs of insolvency or regulatory issues.

2. Key Concerns:

• Growth in current liabilities: The company’s current liabilities have more than doubled from £32,313 in 2023 to £78,454 in 2024, which warrants monitoring to ensure obligations can be met.
• Concentration of control: The sole director and 100% shareholder is the same individual, which may present governance risks related to lack of oversight.
• Tax liabilities: Corporation tax and social security liabilities have increased significantly, indicating a higher tax burden that could impact cash flow if not managed prudently.

3. Positive Indicators:

• Strong liquidity position: Cash at bank increased from £71,165 to £102,717, and net current assets rose substantially to £89,733, indicating good short-term financial flexibility.
• Growing debtor balances: Trade debtors increased markedly from £8,800 to £65,470, suggesting expanding business activity and revenue.
• Compliance and governance: No overdue filings or liquidation status; timely accounts and confirmation statement filings demonstrate regulatory compliance.

4. Due Diligence Notes:

• Investigate the nature and terms of the increased current liabilities to assess repayment schedules and any related party transactions.
• Review debtor aging and credit risk to ensure receivables are collectible and not overstated.
• Confirm the accuracy of tax provisions and review any potential tax disputes or deferred tax liabilities not reflected in the accounts.
• Assess business model sustainability given the company’s advertising agency classification and recent growth trends.
• Evaluate corporate governance practices given sole director/shareholder structure, including any plans for additional oversight or directors.