DANIU XL LIMITED

Executive Summary

Daniu XL Limited presents a moderate risk profile characterized by a strong fixed asset base offset by high long-term liabilities and limited liquid assets. The company appears compliant with regulatory filings and stable operationally, but the thin equity and low current assets warrant cautious evaluation of solvency and liquidity. Further due diligence on debt structure and cash flows is recommended to fully assess financial resilience.

DANIU XL LIMITED - Analysis Report

Company Number: SC689761

Analysis Date: 2025-07-29 20:16 UTC

1. Risk Rating: MEDIUM
   The company shows a stable asset base primarily in fixed assets with modest net assets; however, very high long-term liabilities relative to equity and limited current assets pose a moderate solvency and liquidity risk. The micro-entity size and short trading history limit comprehensive financial insight.

2. Key Concerns:

• High long-term liabilities (£277,893) nearly equal to fixed assets (£279,932), indicating potential leverage risk and dependence on external financing or obligations.
• Very low current assets (£4,046) against current liabilities (£277,893 due after one year, but short-term creditors also present), raising concerns about short-term liquidity and cash flow sufficiency.
• Limited equity base (share capital £100, shareholders funds approx. £5,871) suggests thin capitalisation which may affect operational flexibility and resilience to financial shocks.

3. Positive Indicators:

• The company has maintained a positive net asset position over the past three years, indicating some retained value beyond liabilities.
• No overdue filing obligations and compliance with statutory requirements suggest good governance and regulatory adherence.
• Stable employee count (2) and consistent fixed asset valuation imply operational consistency and no significant asset impairment.

4. Due Diligence Notes:

• Investigate the nature and terms of the long-term liabilities to understand repayment schedules, interest commitments, and creditor risk.
• Review cash flow statements and bank balances if available to assess liquidity beyond balance sheet snapshot.
• Clarify the business model and revenue streams within the "Other letting and operating of own or leased real estate" SIC code to gauge operational sustainability.
• Confirm any related party transactions or off-balance sheet commitments that may affect financial stability.
• Assess the background and involvement of the two directors/shareholders, including any history of financial or regulatory issues.