DAMORY CONSULTING LIMITED

Executive Summary

Damory Consulting Limited is a micro private limited company operating in IT consultancy that has recently experienced a decline in financial position leading to negative net assets and working capital deficits. While regulatory compliance is current and management structure stable, these financial indicators raise medium-level risk concerns primarily around solvency and liquidity. Further due diligence into profitability, cash flow, and operational model is recommended to determine the company’s ability to sustain and grow operations.

DAMORY CONSULTING LIMITED - Analysis Report

Company Number: 13741408

Analysis Date: 2025-07-19 11:52 UTC

1. Risk Rating: MEDIUM
   Damory Consulting Limited shows a recent deterioration in financial position, moving from positive net assets of £4,119 in 2022 to negative net assets of £197 in 2023. While the company remains active and compliant with filings, the negative net current assets and shareholders’ funds in the latest period indicate emerging solvency and liquidity pressures.

2. Key Concerns:

• Negative Net Current Assets (2023): Current liabilities (£1,900) exceed current assets (£1,703), resulting in a working capital deficit, which may impair the company’s ability to meet short-term obligations.
• Decline in Net Assets: The drop from positive net assets in 2022 to a small negative position in 2023 suggests operating losses or write-downs that have eroded equity. This trend may threaten ongoing financial stability without corrective action or capital injection.
• No Employees Reported: The absence of employees could imply reliance on the director or contractors, raising questions about operational scalability and sustainability if the company aims to grow or deliver larger contracts.

3. Positive Indicators:

• Timely Filing Compliance: Accounts and confirmation statements are up to date with no overdue filings, indicating good governance and regulatory compliance.
• Stable Director and PSC Structure: The director and persons with significant control have remained consistent since incorporation, which can imply stable management and clear ownership control.
• Micro-Entity Status: The small size reduces regulatory burden and overhead costs, potentially allowing the company to operate leanly and adapt quickly.

4. Due Diligence Notes:

• Profit and Loss Account Review: As the P&L account has not been filed publicly, request access to internal profit and loss statements to understand the causes of the net asset decline.
• Cash Flow Analysis: Verify cash flow statements to assess liquidity management and timing of receivables/payables.
• Client and Contract Base: Understand the operational model given zero employees—are revenues sustainable and what are the key customer relationships?
• Director’s Plans: Clarify any planned capital injections, restructuring, or strategic changes intended to restore financial health.