D & S LETTINGS LIMITED

Executive Summary

D & S LETTINGS LIMITED is a recently established micro company with a positive net asset position but negative working capital, reflecting early-stage liquidity challenges. Conditional credit approval is advised, contingent on close monitoring of cash flow improvements and operational growth. The directors demonstrate compliance and control, but financial resilience will depend on managing short-term liabilities effectively as the business develops.

D & S LETTINGS LIMITED - Analysis Report

Company Number: 14773823

Analysis Date: 2025-07-19 12:20 UTC

1. Credit Opinion: CONDITIONAL APPROVAL
   D & S LETTINGS LIMITED is a newly incorporated micro private limited company operating in the real estate letting sector. The company has filed timely accounts and returns with no overdue filings, indicating compliance and operational diligence. However, as a first-year company with limited trading history, the financial data is minimal. The company shows positive net assets but has a negative net current assets figure, which signals potential short-term liquidity pressure. Credit approval is recommended on a conditional basis, subject to monitoring of future cash flows and working capital improvements.

2. Financial Strength:
   The balance sheet as at 30 April 2024 shows fixed assets of £39,817 and current assets of £3,346 against current liabilities of £36,780. This results in net current liabilities of £33,434, which is a concern for short-term financial stability. Despite this, total net assets stand at £6,383, which is positive due to the fixed assets base. Shareholders’ funds equal net assets, reflecting no long-term debt. The company’s financial strength is currently weak due to the working capital deficit and minimal retained earnings, understandable given the startup status.

3. Cash Flow Assessment:
   The company’s current assets are significantly lower than current liabilities, leading to negative working capital. This likely reflects cash constraints and a reliance on fixed assets to support operations. Given the micro entity status and only two employees, cash burn may be limited, but the negative net current assets could indicate difficulties in meeting short-term obligations without additional funding or improved receivables management. The lack of detailed cash flow statements limits a full liquidity assessment but the working capital position warrants close scrutiny.

4. Monitoring Points:

• Improvement in net current assets through increased current assets or reduction in current liabilities.
• Timely payment of creditors and ability to meet short-term obligations as the company grows.
• Growth in turnover and profitability to build retained reserves and strengthen equity base.
• Directors’ ability to manage cash flow effectively in a startup environment.
• Any changes in shareholding or additional capital injections to support liquidity.