DAE TECH LTD

Executive Summary

DAE TECH LTD shows a solid and improving financial position with strong net assets growth and positive working capital, supported by stable management. The company’s liquidity and low financial leverage position it well to service credit facilities. Monitoring should focus on business growth metrics and maintaining liquidity as the company evolves.

DAE TECH LTD - Analysis Report

Company Number: 12764666

Analysis Date: 2025-07-20 15:38 UTC

1. Credit Opinion: APPROVE
   DAE TECH LTD demonstrates a stable and improving financial position as a micro private limited company engaged in software development. The company shows consistent growth in net assets and net current assets over the last four years, indicating sound financial management and a capacity to meet short-term obligations. There is no indication of overdue filings or financial distress. The director with significant control has a stable background and no adverse records, which supports confidence in governance. Given these factors, the company appears capable of servicing debt and handling credit facilities, suitable for approval without conditions.

2. Financial Strength:
   The balance sheet reflects a healthy increase in net assets from £3,314 in 2020 to £7,463 in 2024, more than doubling over four years, which signals business growth and accumulation of retained earnings. Current assets increased from £4,391 to £8,425, while current liabilities remain low at £662, resulting in strong net current assets (£7,763) and positive working capital. The company has minimal share capital (£2) but substantial shareholders’ funds reflecting retained profits. The absence of long-term liabilities suggests a conservative capital structure with low financial leverage, enhancing resilience.

3. Cash Flow Assessment:
   The company maintains positive liquidity, with current assets comfortably exceeding current liabilities. Net current assets have steadily improved, indicating effective management of receivables, cash, and payables. Although no employees are reported (average NIL), which may impact operational capacity, the financial position suggests sufficient cash or equivalents to cover short-term commitments. The micro entity exemption means detailed cash flow statements are not available, but working capital trends support a healthy liquidity position.

4. Monitoring Points:

• Monitor growth in turnover and profitability once available, given the micro entity reporting format limits detailed income data.
• Track changes in working capital to ensure continued liquidity support, especially if business scales or takes on credit lines.
• Observe any changes in director appointments or PSCs, particularly given the key control by Mr. Greenfield.
• Watch for any overdue statutory filings or signs of financial stress in future reports.
• Assess operational capacity if the company starts employing staff or expanding activities, which could affect cash flow needs.