DANIEL DODDS CONSULTING LTD

Executive Summary

Daniel Dodds Consulting Ltd shows significant financial deterioration with minimal net assets and persistent liquidity challenges. The company’s inability to generate positive working capital and reliance on director-related receivables undermines its creditworthiness. Given these factors, credit facilities should be declined until substantial improvement in financial strength and cash flow is demonstrated.

DANIEL DODDS CONSULTING LTD - Analysis Report

Company Number: 13063184

Analysis Date: 2025-07-20 12:31 UTC

1. Credit Opinion: DECLINE
   The company exhibits weak financial health with consistent net current liabilities over the last three years, indicating ongoing liquidity pressure. Net assets have dramatically declined from £7,253 in 2020 to just £2 in 2024, reflecting erosion of equity and potential solvency concerns. The minimal share capital (£1) and director-related receivable highlight reliance on internal financing rather than external creditworthiness. These factors combined suggest a limited capacity to service new debt or honor commercial credit terms without additional capital support.

2. Financial Strength:
   The balance sheet reveals declining fixed assets and deteriorating net current assets from a positive £7,172 in 2020 to a negative £1,140 in 2024. The company’s net assets have plummeted from £7,253 to £2, signaling a near-total depletion of shareholder funds. This pattern is a strong indicator of financial distress or operational losses over recent years, reducing the cushion available to absorb shocks or sustain business operations.

3. Cash Flow Assessment:
   Negative net current assets for multiple years indicate the company’s current liabilities exceed current assets, implying potential difficulties in meeting short-term obligations without refinancing or capital injections. The presence of a £2,400 director loan classified as a current asset, which was repaid post year-end, suggests short-term liquidity management through related party transactions rather than robust cash generation. Limited employee base (only 1) and micro-entity status further imply constrained operational scale and cash flow generation capacity.

4. Monitoring Points:

• Net current asset trends and liquidity position on next accounts filing
• Shareholder funds recovery or further erosion
• Director loans or related party transactions that may mask liquidity issues
• Profitability indicators if profit and loss accounts become available
• Timely filing of accounts and confirmation statements to monitor compliance and any signs of financial distress