STEBOS DIGITAL LIMITED

Executive Summary

STEBOS DIGITAL LIMITED demonstrates a stable start with positive net assets and strong liquidity but limited operational history and reliance on director funding. Conditional credit approval is advised, with close monitoring of revenue growth, cash flow sustainability, and compliance to mitigate early-stage risk. The company’s financial position is modest but currently sufficient for its scale.

STEBOS DIGITAL LIMITED - Analysis Report

Company Number: SC787201

Analysis Date: 2025-07-20 16:58 UTC

1. Credit Opinion: CONDITIONAL APPROVAL
   STEBOS DIGITAL LIMITED is a newly incorporated private limited company with a very short operating history (just over one year). The company shows positive net assets and working capital, indicating initial financial stability. However, the small scale of operations, limited financial history, and reliance on director funding (interest-free loan) warrant a cautious approach. Approval is recommended subject to monitoring early trading performance and liquidity, and requiring confirmation of sustainable revenue generation.

2. Financial Strength:
   The balance sheet as of 31 October 2024 shows total current assets of £30,373 (all cash) against current liabilities of £18,496, resulting in net current assets of £11,877. There are no fixed assets, and shareholders’ funds equal net assets at £11,877. The capital structure is minimal with only £1 in called-up share capital, indicating the company’s financial foundation is largely built on retained earnings and director’s loans. Overall, financial strength is modest but sound for a micro entity, with no long-term debt.

3. Cash Flow Assessment:
   Cash reserves of £30,373 exceed short-term liabilities by a comfortable margin, indicating good liquidity at the reporting date. The company’s cash flow position appears stable with no overdrafts or external borrowings. However, ongoing liquidity will depend on the company’s ability to generate operating cash flows, as initial funding includes a director loan of £3,188. Working capital management appears adequate but monitoring cash burn and receivables will be important as the business grows.

4. Monitoring Points:

• Revenue growth and profitability trends in the next 12 months to validate business viability.
• Cash flow generation from operations to ensure liquidity beyond initial director funding.
• Timely filing of accounts and confirmation statements to maintain compliance.
• Any additional borrowing or changes to capital structure impacting financial stability.
• Director conduct and related party transactions to ensure no conflicts or financial risks.