DAIMIO LIMITED

Executive Summary

DAIMIO LIMITED exhibits significant financial distress with a negative net asset position and negative working capital as of the latest accounts, raising solvency and liquidity concerns. While regulatory compliance is up to date and governance appears stable, the company's operational scale and asset base have contracted markedly. Further detailed financial and operational due diligence is recommended to clarify underlying causes and assess ongoing viability.

DAIMIO LIMITED - Analysis Report

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.