Company Number: 13294321

Analysis Date: 2025-07-20 13:51 UTC

1. Credit Opinion: DECLINE
   D&A Capital Ltd exhibits persistent and worsening net liabilities with negative shareholders’ funds increasing from -£10,830 in 2021 to -£23,947 in 2024. The company’s current liabilities significantly exceed current assets, resulting in severe negative working capital and net current liabilities around -£30k. This indicates an ongoing liquidity shortfall and inability to meet short-term obligations without external support. The absence of positive equity and the worsening financial position over multiple years raise substantial credit risk. There is no indication of profitability or cash inflows sufficient to service debt or support new credit.

2. Financial Strength:
   The balance sheet shows very weak financial health. Fixed assets are minimal and declining (£12k to £6k), while current assets are negligible (£1,062 to £816), overshadowed by large current liabilities (~£30k). Negative net assets and shareholders’ funds indicate accumulated losses eroding capital. The company’s micro-entity size and low asset base provide little security or collateral value. The decline in net assets over four years reflects ongoing financial strain without recovery signs.

3. Cash Flow Assessment:
   The negative net current assets highlight critical liquidity issues. The company’s current liabilities are more than 37 times the share capital and far exceed available liquid assets, implying difficulty in meeting short-term liabilities from operating cash flows. The reduction in current assets and persistent deficit suggests cash flow constraints and potential reliance on director loans or external injections to fund operations. The micro-entity exemption from audit limits detail on cash flow but the balance sheet alone signals unsustainable working capital management.

4. Monitoring Points:

• Improvement or further deterioration of net current assets and shareholders’ funds in future filings.
• Evidence of increased current assets or cash inflows to cover liabilities.
• Changes in creditor days or payment terms indicating stress or restructuring.
• Directors’ actions to recapitalise or restructure debt.
• Any overdue filings or change in company status (e.g., liquidation or administration).