Company Number: 12484098

Analysis Date: 2025-07-29 16:56 UTC

1. Credit Opinion: DECLINE
   Danwrights.com Ltd shows increasing financial distress with negative net assets (£-563 as of 30/09/2024) and net current liabilities, indicating the company is currently insolvent on a balance sheet basis. The company ceased trading as of 30/09/2024, which further raises concerns about operational viability and ability to service any new or existing debt. Additionally, the director has an outstanding advance to the company that is unsecured and without repayment terms, reflecting weak financial controls. These factors combine to present high credit risk.

2. Financial Strength:
   The company’s financial position has deteriorated significantly over the past year. Net assets declined from a positive £10 at 31/01/2024 to a deficit of £563 at 30/09/2024. Current liabilities exceed current assets, resulting in negative working capital. The lack of fixed assets and minimal share capital (£10) limits collateral value. The negative equity position signals an erosion of shareholder funds and potential insolvency risk.

3. Cash Flow Assessment:
   Liquidity is poor, with current liabilities exceeding current assets by £563. This negative working capital indicates insufficient short-term resources to meet obligations as they fall due. The company’s cessation of trading as of 30/09/2024 suggests no ongoing cash inflows, exacerbating liquidity risk and undermining ability to repay creditors.

4. Monitoring Points:

• Confirm any plans for restructuring or capital injection to restore solvency.
• Monitor director advances and repayment terms for potential related party risks.
• Watch for any changes in company status, especially liquidation or administration filings.
• Review future trading activity or filing of dormant accounts to understand ongoing viability.