Company Number: 13188815

Analysis Date: 2025-07-29 17:11 UTC

1. Credit Opinion: DECLINE. Reach Digital And Data Group Ltd exhibits a significant deterioration in its financial position over recent years, culminating in a near-zero net asset base (£171 as of 28 Feb 2025) and current liabilities almost equaling current assets (£55,160 vs. £55,331). The sharp increase in trade debtors without corresponding cash inflows and the drastic depletion of cash reserves to £611 indicate poor liquidity management and potential collection issues. Without stronger working capital or equity support, the company’s ability to service debt or meet obligations is highly questionable. The absence of audit and limited disclosures further hinder confidence in financial stewardship.

2. Financial Strength: The company’s net assets have plummeted from £13,937 in 2021 to only £171 in 2025, reflecting accumulated losses or significant write-downs. Shareholders’ funds are minimal (£120 share capital plus a small retained profit balance). The balance sheet shows current liabilities almost equal to current assets, providing negligible net working capital. The company’s trade debtors rose sharply to £54,720 with cash at a very low £611, suggesting poor quality or delayed receivables. Overall, the balance sheet is weak with limited buffer against financial stress or unexpected costs.

3. Cash Flow Assessment: Cash flow is concerning. Cash reserves dropped from over £10,000 in 2022 to just £611 in 2025, while trade debtors ballooned, indicating cash is tied up in receivables and likely collection difficulties. The company has an extremely tight liquidity position, barely covering short-term liabilities. Net current assets are positive but marginal (£171), implying limited working capital to absorb operational fluctuations. This cash flow profile suggests risk of default on short-term obligations without external funding or improved debtor management.

4. Monitoring Points:

• Monitor trade debtor ageing closely to assess collection effectiveness and potential bad debts.
• Watch cash balances and liquidity ratios monthly to detect further deterioration.
• Review creditor payment terms and any overdue balances to prevent supplier action.
• Assess any changes in shareholder funding or director loans that might support working capital.
• Evaluate turnover and profitability trends once profit & loss info is available to detect any recovery.
• Scrutinize director conduct and governance given limited financial buffers.