Company Number: 13027569

Analysis Date: 2025-07-29 18:04 UTC

1. Risk Rating: HIGH
   The company exhibits significant negative net assets and net current liabilities, indicating poor solvency and liquidity. The absence of fixed assets and minimal current assets (£181 cash) against substantial current liabilities (£5,099) creates a high risk that DAILY DRIVING SCHOOL LTD cannot meet its short-term obligations.

2. Key Concerns:

• Negative Net Assets and Shareholders’ Funds: The company’s net liabilities worsened from -£2,148 in 2022 to -£4,918 in 2023, reflecting accumulated losses and eroded equity.
• Liquidity Shortfall: Current liabilities exceed current assets by nearly £5,000, with only £181 in cash and no debtors, signaling a critical cash flow problem.
• No Employees and Asset Disposal: The company reports no employees and has fully depreciated/disposed of its motor vehicle assets, which may affect operational sustainability in a service-based driving school business.

3. Positive Indicators:

• Compliance with Filing Deadlines: Accounts and confirmation statements are up to date and not overdue, indicating good regulatory compliance.
• Stable Directorship: The sole director and secretary have been in place since incorporation with no disqualifications noted.
• Small Company Filing Exemption: The company qualifies for small company exemptions, reducing administrative burdens.

4. Due Diligence Notes:

• Investigate the company’s current trading activity and revenue generation given the absence of employees and fixed assets.
• Review director’s loan account (£1,989) and the company’s plans to address the growing negative equity and liquidity deficit.
• Assess any contingent liabilities or off-balance sheet obligations not disclosed in the financial statements.
• Confirm the company’s business model viability and whether the director has plans for recapitalization or restructuring.