DAILYNID LTD

Executive Summary

DAILYNID LTD currently presents weak financials with net liabilities and negative working capital, reflecting limited ability to service debt or absorb financial shocks. The company’s micro scale and minimal employee count further limit resilience. Credit approval is not recommended without substantial improvement or additional security.

DAILYNID LTD - Analysis Report

Company Number: 14327088

Analysis Date: 2025-07-29 19:37 UTC

1. Credit Opinion: DECLINE
   DAILYNID LTD shows a concerning deterioration in its financial position over the latest year. The company reported net liabilities of £6,947 as at 31 August 2024, compared to net assets of £5,695 the prior year. Current liabilities exceed current assets by £6,947, indicating negative net working capital and potential liquidity stress. Given this weak balance sheet and limited asset base, the company’s capacity to service additional debt or meet short-term obligations is questionable. The micro-entity scale and one employee suggest limited operational scale and financial resilience. Without evidence of improving cash flows or capital injection, extending credit carries significant risk.

2. Financial Strength:
   The balance sheet reveals a decline from positive net assets of £5,695 in 2023 to net liabilities of £6,947 in 2024. Current liabilities increased substantially to £18,587 against current assets of only £11,640, resulting in negative working capital. There are no long-term liabilities reported in 2024, but the overall net assets position is negative. Shareholders’ funds are in deficit, indicating accumulated losses or capital erosion. The absence of fixed assets and minimal employee base suggest the company operates with limited tangible security or operational scale. Overall, the financial strength is weak with a lack of cushion to absorb shocks.

3. Cash Flow Assessment:
   Although the accounts do not provide explicit cash flow statements, the negative net current assets imply potential liquidity constraints. Current liabilities exceed current assets by almost £7,000, which may pressure the company’s ability to meet immediate payment obligations. The company’s small size and micro-entity status typically limit cash reserves. Without evidence of positive operating cash flow or external funding, liquidity risk is elevated. Working capital management needs close monitoring, and the company may require additional capital or operational improvements to sustain cash flow.

4. Monitoring Points:

• Monitor future filings for improvement or further deterioration in net assets and working capital position.
• Track any capital injections or loans from shareholders to strengthen equity.
• Watch for timely payment of creditors and absence of defaults or overdue liabilities.
• Review turnover and profitability trends if available to assess operational viability.
• Keep an eye on director and company status updates for any adverse changes.