Company Number: SC668993

Analysis Date: 2025-07-20 13:21 UTC

1. Credit Opinion: APPROVE
   D4 DECOR LIMITED demonstrates a positive and improving financial position with substantial growth in net assets and net current assets in the latest year. The company is active, with no overdue filings or signs of distress. Directors have maintained consistent control and there are no indications of management concerns. The company’s ability to increase working capital significantly suggests it can service short-term liabilities and credit facilities.

2. Financial Strength:
   The balance sheet shows steady growth over five years, with net assets rising from £3,828 in 2020 to £32,584 in 2024. Fixed assets remain modest (£5,667 in 2024), appropriate for a painting business. Current assets grew dramatically from £10,854 in 2023 to £50,396 in 2024, while current liabilities increased less proportionally to £23,479, resulting in improved net current assets (£26,917 in 2024). This indicates enhanced liquidity and an expanding operational base, supported by shareholders’ funds increasing in line with assets.

3. Cash Flow Assessment:
   The company’s working capital position is strong, with net current assets more than quadrupling in the latest year. This signals good short-term liquidity and the ability to meet immediate financial obligations. While detailed cash flow statements are not available, the substantial increase in current assets relative to liabilities suggests positive cash inflows or effective management of receivables and payables. Maintaining this trend is critical for continued debt servicing capacity.

4. Monitoring Points:

• Monitor liquidity ratios (current ratio, quick ratio) regularly to ensure working capital remains strong as business scales.
• Watch for any sudden increases in current liabilities that could strain cash flow.
• Review turnover and profitability trends when accounts become available to confirm sustainable earnings growth.
• Observe director changes or any PSC shifts that might affect governance or control.
• Keep track of timely filings to maintain compliance and credit reputation.