Company Number: 13678064

Analysis Date: 2025-07-20 14:18 UTC

1. Risk Rating: HIGH
   Despite being an active private limited company, DAIMIO LIMITED shows significant financial distress as of the latest accounts. The company reported net liabilities of £12,392 at the financial year ending 31 October 2023, a marked deterioration from net assets of £20,006 the previous year. This negative net asset position signals solvency concerns. The company is categorized as a micro-entity with minimal filing requirements, limiting available financial detail.

2. Key Concerns:

• Solvency and Net Asset Decline: The company’s net assets swung from positive £20,006 in 2022 to negative £12,392 in 2023, indicating that liabilities exceed assets and raising doubts about its ability to meet long-term obligations.
• Negative Working Capital: Current liabilities (£33,093) exceed current assets (£16,391) by £16,702, suggesting liquidity stress and potential cash flow difficulties in meeting short-term obligations.
• Limited Operational Scale and Employee Base: The company employs only one person, which may constrain operational capacity and scalability, increasing business risk. Additionally, the drastic reduction in fixed assets from £35,654 to £4,310 within one year may indicate asset disposals or impairments that warrant scrutiny.

3. Positive Indicators:

• No Overdue Filings: The company is up to date with accounts and confirmation statement filings, suggesting compliance with regulatory requirements and good governance practices.
• Stable Directorship and Share Ownership: The director and PSCs appear stable with no disqualifications or governance red flags, and significant control resides with two individuals, potentially facilitating decision-making.
• Micro-entity Status: The company benefits from simplified reporting requirements, reducing administrative burden.

4. Due Diligence Notes:

• Investigate the cause of the sharp decline in fixed assets and net asset position between 2022 and 2023. Was this due to asset disposals, impairments, or operational losses?
• Clarify the nature and terms of current liabilities to assess short-term obligations and liquidity risk more precisely.
• Review cash flow statements (if available) or management accounts to evaluate ongoing operational cash generation or burn rate.
• Assess the business model and revenue streams in the context of having only one employee to understand operational sustainability.
• Confirm if there are any contingent liabilities, ongoing disputes, or off-balance-sheet obligations not reflected in micro-entity accounts.