TECHSHIFT DIGITAL LTD

Executive Summary

Techshift Digital Ltd is a newly formed small private limited company exhibiting early signs of financial stability with positive net current assets and timely statutory filings. However, limited operating history, a modest asset base, and director-related funding indicate a medium risk profile requiring close monitoring of cash flow and creditor obligations. No regulatory or governance concerns are evident at this stage.

TECHSHIFT DIGITAL LTD - Analysis Report

Company Number: 15218025

Analysis Date: 2025-07-29 13:45 UTC

1. Risk Rating: MEDIUM
   Despite being a newly incorporated private limited company with modest net assets, Techshift Digital Ltd shows some initial financial stability. However, limited financial history, small asset base, and director-related creditor balances suggest medium risk in solvency and liquidity terms at this early stage.

2. Key Concerns:

• Limited Financial History and Scale: Incorporated in October 2023, the company has only one accounting period with very small current assets (£3,786) and net assets (£1,035), which limits the ability to assess operational stability and creditworthiness.
• Director Loan Balance: There is an unsecured, interest-free amount of £212 owed to the director, repayable on demand. This related party transaction could indicate reliance on director funding, which may affect cash flow flexibility.
• Taxation and Social Security Creditors: The company owes £1,979 in taxation and social security liabilities falling due within one year, representing a significant portion of current liabilities (£2,751). This warrants monitoring to ensure timely settlement and compliance.

3. Positive Indicators:

• Current Solvency Position: The company reports positive net current assets (£1,035), indicating current assets exceed current liabilities, which is a good sign for meeting short-term obligations.
• Up-to-Date Filings and Compliance: Accounts and confirmation statements are filed on time with no overdue filings, reflecting good governance and regulatory compliance at this stage.
• Clear Ownership and Control: The sole director and 90% shareholder, Mr. Mathew James, maintains clear control with no indication of disqualification or governance issues.

4. Due Diligence Notes:

• Review Cash Flow Forecasts and Business Plan: Given the small asset base and early stage, detailed cash flow projections and business model viability should be reviewed to assess sustainability.
• Examine Tax and Social Security Payment Plans: Investigate the nature and timing of the taxation and social security liabilities to understand if there are any payment delays or risks of enforcement action.
• Clarify Director Loan Arrangements: Confirm terms and repayment expectations of the director creditor balance to evaluate any contingent liquidity pressure or director dependence.