Company Number: 13146958

Analysis Date: 2025-07-29 21:05 UTC

1. Credit Opinion: APPROVE
   Dallys Food Limited is a micro-entity operating in the take-away food sector, with a stable financial position over the last few years. The company shows positive net current assets and net assets, indicating adequate short-term liquidity and overall financial stability. There is no indication of overdue filings or financial distress. The single director and 100% shareholder, Mr. Daljit Singh, has maintained control since incorporation, suggesting stable management. While the company currently has no employees, which may indicate a small-scale or owner-operated business, there are no red flags suggesting inability to meet credit obligations. Therefore, the company is assessed as capable of servicing debt and honoring commercial agreements.

2. Financial Strength:
   The balance sheet presents modest fixed assets (£2,684 as of 2024) and current assets (£2,019), with current liabilities at £902, resulting in net current assets of £1,117. Net assets stand at £3,801, showing a slight decrease from prior years but remaining positive and stable. The company’s low asset base is typical for a micro-entity in the food takeaway sector, but the consistent equity position indicates no erosion of capital. The absence of debt beyond current liabilities reduces solvency risk. Overall, the financial strength is adequate for its scale of operations.

3. Cash Flow Assessment:
   Current assets exceed current liabilities by £1,117, reflecting positive working capital and liquidity to cover short-term obligations. The company’s cash and equivalents are not explicitly stated but presumably form part of current assets. The stable or slightly improved working capital position from prior years suggests effective cash management. However, the lack of employees might imply limited operational scale or reliance on owner involvement, which may affect growth prospects but not immediate liquidity. There is no indication of cash flow stress or overdue liabilities.

4. Monitoring Points:

• Monitor the company’s turnover and profitability in future accounts to assess growth trajectory and sustainability.
• Watch for any significant changes in current liabilities or asset composition that could impact liquidity.
• Evaluate the impact of having no employees on operational capacity and potential scalability.
• Keep oversight on director’s conduct and any changes in ownership or management that might affect governance or credit risk.