Company Number: 13515227

Analysis Date: 2025-07-20 14:47 UTC

1. Credit Opinion: DECLINE
   D E HOMEWARE LIMITED shows consistently negative net current assets and net liabilities over four years, indicating a weak liquidity position and potential difficulty meeting short-term obligations. The company's micro-entity scale and limited fixed assets suggest minimal collateral for secured lending. With no indication of profit generation or improvement in working capital, the risk of default is elevated. The business is in retail, a competitive sector with thin margins, further stressing financial resilience.

2. Financial Strength:
   The balance sheet reveals net liabilities around £14,654 as of July 2024, down from £18,921 in 2021 but still negative, meaning total liabilities exceed assets. Fixed assets are negligible (£1,650), and current liabilities (£60,273) outweigh current assets (£43,969) resulting in negative net current assets. Shareholders' funds are negative, reflecting accumulated losses or insufficient capital. Overall, the financial position is weak with limited buffer to absorb shocks.

3. Cash Flow Assessment:
   Current liabilities consistently exceed current assets by approximately £16k to £21k historically, indicating a working capital deficiency. The company likely relies on external financing or owner funds to cover operational cash needs. With only two employees and micro-entity status, cash flow is likely tight. The absence of detailed cash flow statements or profitability data limits full assessment, but the balance sheet points to liquidity stress.

4. Monitoring Points:

• Improvement or deterioration in net current assets and net liabilities
• Trends in turnover and profitability (not provided but critical)
• Timely payment of suppliers and creditors, given negative working capital
• Director's continued capital injections or external financing arrangements
• Any changes in business model or market conditions affecting cash flows