D C WELL SERVICES LTD

Executive Summary

D C Well Services Ltd, a recently incorporated micro-entity in mineral oil refining, presents a high risk profile due to negative working capital and shareholders’ funds after its first accounting period. Although regulatory filings are current and ownership is clear, the company’s immediate liquidity and solvency positions raise concerns about its ability to sustain operations without additional capital or revenue. Further investigation into funding plans and liabilities is recommended to fully assess risk.

D C WELL SERVICES LTD - Analysis Report

Company Number: SC775978

Analysis Date: 2025-07-20 18:24 UTC

1. Risk Rating: HIGH
   The company shows negative net current assets and overall negative shareholders' funds within its first financial year, indicating an immediate solvency concern.

2. Key Concerns:

• Negative Working Capital: Current liabilities (£7,316) exceed current assets (£2,940) by £4,376, signaling liquidity pressure to meet short-term obligations.
• Negative Net Assets: Total assets less current liabilities stand at -£399, meaning the company’s liabilities surpass its assets.
• Newly Incorporated with No Operating History: Incorporated only in July 2023 with a single employee and limited financial data, increasing uncertainty about operational stability.

3. Positive Indicators:

• Compliance with Filing Requirements: Accounts and confirmation statements are filed on time, suggesting good regulatory compliance to date.
• Clear Ownership and Control: Single director and 75-100% shareholder alignment may simplify decision-making processes.
• Micro-Entity Classification: Small size limits regulatory burden and complexity.

4. Due Diligence Notes:

• Investigate the nature and timing of current liabilities to assess if any short-term debts are overdue or at risk of triggering enforcement actions.
• Review cash flow projections and funding arrangements to determine how liquidity issues will be addressed going forward.
• Assess management plans for addressing negative equity and achieving operational break-even.
• Confirm no related party transactions or contingent liabilities that may further impact financial stability.
• Monitor director’s background for any history of disqualifications or adverse conduct (none indicated currently).