Company Number: 13258905

Analysis Date: 2025-07-20 17:06 UTC

1. Credit Opinion:
   DECLINE. CDSP LTD demonstrates a weak financial position with persistent and significant negative net current assets and shareholders’ funds, indicating insolvency on a balance sheet basis. The company’s current liabilities far exceed its current assets, primarily driven by large director’s loan accounts. There is no evidence of profitability or cash flow generation to service debt or support business growth. The directors’ funding support appears critical but may not be sustainable. Given the negative equity and liquidity risk, extending further credit would expose the bank to high collection risk.

2. Financial Strength:
   The balance sheet shows total investment property assets of approximately £263k, but current liabilities exceed current assets by £268k as of 30 November 2023. Total shareholders' funds are negative £5.45k, deteriorating from negative £1.45k the previous year. The company is highly leveraged with director loans making up the majority of liabilities (£204k). Despite some asset growth (investment property), the company is technically insolvent with net liabilities after current liabilities considered. The lack of equity cushion and continued dependency on directors’ current accounts weakens financial resilience.

3. Cash Flow Assessment:
   Cash at bank is only £8.8k, insufficient to cover short-term liabilities of £278.9k. Debtors are minimal and represent deferred tax assets rather than trade receivables, so they do not contribute to immediate liquidity. The company relies on directors’ current accounts for funding, which is unsecured and potentially volatile. There is no indication of positive operating cash flows or working capital improvements. The negative net current assets position indicates poor liquidity management and significant short-term funding risk.

4. Monitoring Points:

• Watch for any changes in directors’ loan accounts and their repayment or additional funding.
• Monitor operating cash flows and any improvement in working capital position.
• Track any revaluation or disposal of investment property assets that could improve the balance sheet.
• Review future filings for profitability and signs of financial restructuring.
• Ensure timely filing of accounts and confirmation statements to avoid compliance risks.