D2D RECORDS LTD

Executive Summary

D2D RECORDS LTD demonstrates a high risk profile due to ongoing and increasing net liabilities alongside negative working capital, raising concerns about its ability to meet financial obligations. Although compliant with filing requirements and maintaining active status, the company’s financial trajectory suggests liquidity and solvency challenges. Further detailed financial and operational due diligence is recommended to assess sustainability and management’s recovery plans.

D2D RECORDS LTD - Analysis Report

Company Number: 13152941

Analysis Date: 2025-07-20 17:55 UTC

1. Risk Rating: HIGH
   The company exhibits significant solvency concerns with net liabilities increasing to £38,261 as of 31 January 2024. The persistent negative net current assets and shareholders’ funds over multiple years highlight a worsening financial position, indicating difficulty in meeting obligations.

2. Key Concerns:

• Persistent and increasing net liabilities with no sign of improvement, growing from £10,276 (2021) to £38,261 (2024).
• Negative working capital (net current liabilities) worsening, indicating liquidity stress and potential cash flow problems.
• No employees and minimal share capital (£1), suggesting limited operational scale and potential lack of financial support or investment.

3. Positive Indicators:

• The company is current with all statutory filings, including accounts and confirmation statements, indicating compliance with regulatory requirements.
• No indication of insolvency procedures or liquidation, and the company remains active.
• Director has maintained continuous appointment since incorporation, suggesting stable governance at the leadership level.

4. Due Diligence Notes:

• Investigate the causes for persistent and worsening losses and net liabilities, including underlying business model viability and revenue generation.
• Review cash flow statements and any off-balance sheet liabilities or contingent risks not disclosed in micro-entity accounts.
• Assess director’s plans for financial recovery or injection of capital, including any related-party transactions or loans.
• Confirm absence of director disqualification or regulatory issues beyond publicly available data.
• Consider the impact of the company’s artistic and sound recording activities on revenue stability and market risks.