Company Number: 12407035

Analysis Date: 2025-07-20 15:29 UTC

1. Risk Rating: LOW
   DALAR DAVIES LIMITED shows strong net asset positions consistently over recent years, with net assets above £230k and positive working capital. There are no overdue filings or indications of financial distress. The company is micro-entity sized with a small share capital but healthy balance sheet figures, suggesting low immediate solvency or liquidity risk.

2. Key Concerns:

• Sharp decrease in current assets from £302k (2023) to £147k (2024) alongside a reduction in current liabilities from £97k to £20k may indicate changes in cash or receivables management that merit review.
• The company reports zero employees, which may raise questions about operational scale or sustainability depending on the nature of the business and whether key functions are outsourced or owner-managed.
• Limited financial disclosure due to micro-entity status restricts insight into profitability, cash flows, or contingent liabilities that might affect future stability.

3. Positive Indicators:

• Positive net current assets and net assets for each year indicate the company can meet short-term obligations and has a solid equity base.
• No overdue accounts or confirmation statements demonstrate good regulatory compliance and governance.
• Directors have maintained consistent control and there are no disqualification or governance issues noted.
• Fixed assets increased from £66k to £107k over the last year, suggesting recent investment in tangible long-term resources.

4. Due Diligence Notes:

• Investigate the reason behind the significant reduction in current assets and liabilities from 2023 to 2024 to confirm no hidden liquidity pressures.
• Obtain management accounts or further financial data to assess profitability trends and cash flow adequacy since micro-entity accounts provide limited detail.
• Clarify business operations and cost structure since zero employees are reported; understand reliance on contractors or family management.
• Confirm no outstanding contingent liabilities or related party transactions that might not be captured in micro-entity filings.
• Review any available strategic plans or market position given the niche SIC classification "raising of other animals" to gauge operational sustainability.