TRANSFORM DIGITAL IT SERVICES LTD

Executive Summary

Transform Digital IT Services Ltd is a small, micro-entity with limited financial resources but currently maintains positive net assets and working capital. The decline in net assets and modest scale suggest some risk, warranting conditional credit approval with close monitoring of liquidity and financial performance. Continued compliance and timely payments will be critical for ongoing credit support.

TRANSFORM DIGITAL IT SERVICES LTD - Analysis Report

Company Number: 12725470

Analysis Date: 2025-07-29 16:53 UTC

1. Credit Opinion: CONDITIONAL APPROVAL
   Transform Digital IT Services Ltd is a micro-entity showing a small but positive net asset base and working capital. However, the company’s net assets declined significantly from £34,289 in 2023 to £21,290 in 2024, indicating some erosion of financial strength. The business has limited fixed assets and a single employee, highlighting a small operational scale and potential vulnerability to economic fluctuations. The absence of audited accounts and limited financial disclosures warrant caution. Credit could be extended on a conditional basis subject to monitoring of timely payments and maintenance of liquidity.

2. Financial Strength:
   The company’s balance sheet reflects modest total assets (£39,490 in 2024) funded by shareholders’ equity of £21,290, with no indication of long-term debt. The decrease in net assets year-on-year suggests profitability pressures or withdrawals. The net current assets of £13,436 provide a reasonable short-term buffer against liabilities (£18,200 current liabilities). The company remains solvent but has limited financial depth and no material fixed asset base, which restricts collateral value.

3. Cash Flow Assessment:
   Current assets of £31,636 primarily support working capital needs, with current liabilities of £18,200 indicating manageable short-term obligations. The positive net current assets imply the company can cover its immediate debts, but the decline from prior year signals potential tightening liquidity. Given the micro-entity status and just one employee, cash flows are likely tight and highly dependent on ongoing business revenue. The absence of detailed cash flow statements limits full assessment, so careful scrutiny of payment patterns is recommended.

4. Monitoring Points:

• Track net asset trends and working capital to detect further erosion.
• Monitor timely filing of accounts and confirmation statements to ensure compliance.
• Review payment history on credit facilities to confirm liquidity stability.
• Assess revenue and profitability trends once available to verify business sustainability.
• Keep watch on director’s conduct and any changes in ownership or control.