DAH MORTGAGES LIMITED

Executive Summary

Dah Mortgages Limited is currently experiencing financial distress, with negative working capital and net liabilities indicating liquidity and solvency challenges. Immediate actions focusing on cash flow improvement, debt restructuring, and capital strengthening are essential to restore financial health and avoid insolvency risks.

DAH MORTGAGES LIMITED - Analysis Report

Company Number: 13693560

Analysis Date: 2025-07-29 16:36 UTC

Financial Health Score: D

The company currently shows financial distress, evidenced by persistent net liabilities and working capital deficits. While it remains active with no overdue filings, the negative equity and increasing creditor obligations signal underlying liquidity and solvency issues.

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Key Vital Signs

Metric	2023 Value	Interpretation
Current Assets	£4,092	Very low short-term resources; limited cash buffer
Current Liabilities	£19,758	Obligations due within a year exceed assets by ~5x
Net Current Assets	-£15,666	Negative working capital — symptom of liquidity strain
Net Assets (Equity)	-£15,666	Negative shareholder funds; company is technically insolvent
Share Capital	£1	Minimal equity base; limited capital buffer
Director & Secretary	Single individual (Deborah Ann Hurley)	Concentrated control, potential risk if no external oversight

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Symptoms Analysis

• Liquidity Deficiency: The company's current assets (mainly cash) are grossly insufficient to cover current liabilities, indicating a "symptom of distress" in the short-term cash flow management.
• Negative Equity: The net liabilities position means the company owes more than it owns, suggesting accumulated losses or funding through creditor borrowings rather than equity.
• Increasing Creditors: The rise in current liabilities from £16,054 (2022) to £19,758 (2023), particularly bank loans and corporation tax, points to growing financial burden and potential difficulty in meeting obligations timely.
• Minimal Capital Injection: With only £1 in called-up share capital, the company has a very thin capital base, offering little resilience to absorb losses or finance growth.
• Single Person Control: The sole director and shareholder model may limit the availability of diverse strategic input and oversight, which can exacerbate financial risks if not managed carefully.

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Diagnosis

Dah Mortgages Limited exhibits classic symptoms of financial strain. The negative working capital and net liability position are warning signs that the company is struggling to maintain "healthy cash flow" and operational liquidity. The incremental increase in liabilities and tax obligations without a corresponding increase in current assets suggests the company might be relying on creditor financing or deferring payments to sustain operations. This financial "unwellness" is typical of a company in the early stages of distress that, if unaddressed, could escalate toward insolvency risk.

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Prognosis

If the current financial trends persist without corrective action, the company risks worsening liquidity shortages and potential inability to meet creditor demands, which may lead to insolvency procedures. However, the prognosis can improve if prompt measures are taken to strengthen the cash flow, reduce debts, and recapitalise the business. Given the company’s small size and single shareholder/director structure, swift, decisive management intervention is crucial to reverse the negative trajectory.

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Recommendations

1. Cash Flow Management: Implement stringent cash flow forecasting and control practices to monitor inflows and outflows closely, ensuring timely payment of critical liabilities.
2. Debt Restructuring: Negotiate with creditors and lenders to restructure current liabilities, possibly extending payment terms or reducing interest, to alleviate immediate pressure.
3. Capital Injection: Consider new equity funding or director loans to improve net assets and provide a buffer against operational losses.
4. Cost Control: Review operational expenses to identify non-essential costs that can be curtailed to preserve cash.
5. Professional Advice: Engage with financial advisors or insolvency practitioners early to explore turnaround options and avoid formal insolvency.
6. Governance Strengthening: If possible, involve additional directors or advisors to enhance oversight and strategic decision-making.

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