CURL OF DUTY LIMITED

Executive Summary

Curl of Duty Limited demonstrates a solid initial financial position with strong cash reserves and positive net assets for a newly incorporated company. However, limited trading history and sector volatility warrant a conditional credit approval with ongoing monitoring of cash flow and operational performance. The company’s ability to service debt and meet liabilities will depend on its success in generating consistent revenue and managing tax obligations.

CURL OF DUTY LIMITED - Analysis Report

Company Number: 14527373

Analysis Date: 2025-07-20 14:02 UTC

1. Credit Opinion: CONDITIONAL APPROVAL
   Curl of Duty Limited is a very young private limited company incorporated in late 2022 and operating in the performing arts sector. The company shows a positive net asset position with net current assets of £105,887 as of its first full financial year ending 31 December 2023. The balance sheet reflects a cash-rich position (£177,196) relative to current liabilities (£71,353), which supports short-term liquidity. However, the company is still in its infancy with no employees reported and limited trading history to demonstrate sustainable cash flows. The directors, including the majority shareholder Dylan Llewellyn, appear to be managing the company prudently. Given the early stage and the sector’s inherent volatility, credit approval should be conditional on monitoring trading performance and liquidity over the next 12 months.

2. Financial Strength:
   The company’s balance sheet is modest but healthy for a startup. Total assets less current liabilities and net assets stand at £105,887, primarily supported by cash holdings. Current liabilities of £71,353 include a significant taxation and social security creditor (£52,430), indicating accrued payroll or VAT liabilities, likely from initial trading activity. Shareholders’ funds comprise a nominal share capital of £100 and a profit and loss reserve of £105,787, reflecting retained earnings or capital injections to date. There are no fixed assets or long-term borrowings reported. The absence of debt and positive equity provide a solid foundation, but the company’s financial strength remains limited by its short operating history and reliance on cash injections.

3. Cash Flow Assessment:
   Curl of Duty Limited holds substantial cash reserves (£177k) relative to its current liabilities, producing a net current asset position of £105,887, which indicates good short-term liquidity. The company’s cash balance provides an adequate buffer to cover outstanding creditors and tax obligations. However, there are no reported employees, and trade receivables are negligible (£44), implying limited revenue generation currently. The director has extended an interest-free loan of £17,723 to the company, which partially supports working capital. Cash flow sustainability depends on the company’s ability to convert its performing arts services into consistent income streams. Monitoring ongoing cash generation and creditor payments is essential.

4. Monitoring Points:

• Revenue and profitability trends in the next 12 months to confirm business viability and repayment capacity.
• Management of taxation and social security liabilities to avoid accrual build-up or penalties.
• Cash flow statement and working capital cycles to ensure liquidity remains sufficient for operational needs.
• Any changes in shareholding or director involvement that may affect control or financial support.
• Sector-specific risks in performing arts that could impact cash flow or demand.