DAMIAN BYRNES LIMITED

Executive Summary

Damian Byrnes Limited has demonstrated a significant recovery in its financial position in the latest year, moving from negative net assets to a positive equity and cash balance. However, the company’s history of insolvency indicators, reliance on director loans, and single-person control represent moderate risk factors. Continued monitoring of funding arrangements and operational sustainability is recommended for investors considering exposure.

DAMIAN BYRNES LIMITED - Analysis Report

Company Number: 12480937

Analysis Date: 2025-07-20 12:25 UTC

1. Risk Rating: MEDIUM

The company shows improved solvency as of the latest financial year but has a history of net liabilities and negative shareholders’ funds that warrants caution.

2. Key Concerns:

• Prior Negative Net Assets: For the financial years ending 2022 and 2023, the company reported negative net assets and shareholders’ funds, indicating prior insolvency or balance sheet weakness.
• Significant Increase in Creditors: Current liabilities jumped substantially from £31,922 in 2023 to £171,900 in 2024, driven largely by director loans (£64,954) and accruals (£75,000), which could signal liquidity pressure or reliance on related party funding.
• Concentration of Control: The sole director, Mr. Damian Travis Byrnes, owns 75-100% of shares and is the only employee, which may pose governance and operational risks due to limited management depth and oversight.

3. Positive Indicators:

• Restored Positive Net Assets: The latest accounts show net assets of £41,913 and positive net current assets of £40,449, reflecting a meaningful turnaround from prior years.
• Strong Cash Position: Cash at bank improved markedly to £111,349, providing liquidity to meet short-term obligations.
• Compliance with Filing Requirements: There are no overdue accounts or confirmation statements, indicating sound regulatory compliance and administrative discipline.

4. Due Diligence Notes:

• Verify the nature and terms of the director loans and accruals to assess repayment risk and funding sustainability.
• Investigate the cause of the prior losses and negative equity position to understand business stability and potential recurring risks.
• Review cash flow statements and client contract terms (given the SIC code for specialised design activities) to confirm ongoing operational viability.
• Assess the impact of owner concentration on decision-making and potential succession or continuity risks.