Company Number: SC690114

Analysis Date: 2025-07-20 15:00 UTC

1. Credit Opinion: DECLINE
   D AND D WHEELS LTD is a very small, micro-entity in the retail trade of motor vehicle parts and accessories. The company shows minimal financial scale and no operational employees. Its net assets are positive but very low (£1,883 at 2024 year-end), reflecting almost no financial buffer. With only one director and negligible capital, the company’s ability to service debt or withstand financial stress is limited. The absence of turnover or profit data and minimal current liabilities suggest limited business activity or scale. Given the lack of financial strength and operating scale, extending credit would carry high risk.

2. Financial Strength:
   The balance sheet shows net current assets of £1,883 and net assets of £1,883 as of 28 February 2024, up from £1,033 the prior year. This indicates slight growth but on a very small base. Current liabilities are low (£1,883), and the company has no fixed assets or long-term liabilities disclosed. Share capital is minimal at £1.00. The company is solvent but extremely thinly capitalized with very limited equity or assets to cushion losses or support borrowing.

3. Cash Flow Assessment:
   There is no direct cash flow statement available, but the balance sheet shows net current assets equal to net liabilities, suggesting very limited liquidity. The company reports zero employees and no indication of operational scale or cash generation. This raises concerns about working capital sufficiency and ability to meet short-term obligations beyond the very low liabilities recorded. The lack of turnover information is a key gap in evaluating operational cash flows.

4. Monitoring Points:

• Monitor filing of full accounts for turnover, profit, and cash flow details to better assess operational performance.
• Track net current assets and liabilities for any material changes indicating financial stress.
• Review any changes in director appointments or PSCs that may impact governance or credit risk.
• Watch for overdue filings or signs of operational scale-up or decline.
• Evaluate any new borrowing or credit facility requests against improved financial disclosures.