D W SELF STORAGE LTD

Executive Summary

D W SELF STORAGE LTD demonstrates a gradual strengthening of its balance sheet over recent years but continues to operate with negative working capital, which poses liquidity risks. Credit approval is feasible on a conditional basis, requiring active monitoring of cash flow and short-term liabilities. The company’s small size and limited asset base necessitate cautious credit exposure with possible security.

D W SELF STORAGE LTD - Analysis Report

Company Number: 13619443

Analysis Date: 2025-07-29 12:26 UTC

1. Credit Opinion: CONDITIONAL APPROVAL
   D W SELF STORAGE LTD shows improving net assets and shareholders' funds over the last three years, indicating some growth in financial strength. However, persistent negative net current assets (working capital deficit) raise concerns about short-term liquidity and the ability to meet current liabilities promptly. The company is a micro entity with limited fixed assets and only one employee, suggesting a small operational scale. Given these factors, credit approval is conditional upon close monitoring of cash flow and receivables management to ensure ongoing liquidity. Additional security or guarantees may be advisable.

2. Financial Strength:
   The company’s net assets have increased from £545 in 2021 to £10,594 in 2024, showing gradual equity buildup. Total assets less current liabilities improved from £1,745 to £12,121 over the same period. Fixed assets have slightly decreased but remain relatively stable around £25-30k. The small equity base and limited asset coverage reflect a modest capital structure typical of a micro business. The balance sheet shows no significant long-term debt but current liabilities exceed current assets by £13,698 as of the latest accounts, indicating reliance on short-term financing or delayed payables.

3. Cash Flow Assessment:
   Negative net current assets indicate a working capital deficit, which may constrain the company’s ability to cover short-term obligations without additional financing. Current liabilities remain high relative to current assets, although the net current liabilities have improved from £31,200 in 2021 to £13,698 in 2024. The company employs only one person, likely keeping operating costs low, but cash flow visibility is limited due to lack of detailed cash flow statements. The small scale and negative working capital suggest a need for careful cash flow management to avoid liquidity stress.

4. Monitoring Points:

• Continued improvement or stabilization of net current assets toward positive territory.
• Timely settlement of trade payables and management of creditors days.
• Maintenance of or growth in net assets and shareholder funds to support capitalization.
• Verification of collection periods on debtors to support cash inflows.
• Watch for any changes in company status or director appointments that might signal operational risks.