Company Number: 12841536

Analysis Date: 2025-07-20 15:31 UTC

1. Risk Rating: HIGH
   DAPT UK LIMITED demonstrates significant financial stress as evidenced by its negative net assets (£-10,297 as of 31 August 2024) and negative net current assets (£-11,703). The deterioration from positive net assets and net current assets in the prior year to negative in the most recent year raises concern about solvency and liquidity.

2. Key Concerns:

• Solvency Risk: The company’s net assets have shifted from £19,569 positive in 2023 to a deficit of £10,297 in 2024, indicating accumulated losses eroding shareholders’ funds to -£110,366.
• Liquidity Concerns: Current liabilities (£75,968) exceed current assets (£64,265), with cash at bank dropping significantly from £39,346 to £13,568 in one year, suggesting cash flow pressure.
• Operational Stability: The company has maintained a steady small workforce (3 employees) but declining financial health may impair operational capacity or ability to meet obligations.

3. Positive Indicators:

• Timely Filings: Accounts and confirmation statements are filed on time with no overdue filings or penalties reported, indicating regulatory compliance.
• Active Status & Business Activity: The company remains active, engaged in IT consultancy (SIC 62020), with a consistent client receivable balance (~£50k), showing ongoing business operations.
• Experienced Director: The presence of a current director with no noted disqualifications supports governance continuity.

4. Due Diligence Notes:

• Investigate causes of the significant decline in cash and working capital in the latest year and whether this trend is expected to continue.
• Assess the collectability of trade debtors (£50,697) given the liquidity stress; aging analysis would clarify risk of bad debts.
• Review the company’s business model and contracts to evaluate revenue sustainability and prospects for reversing losses and restoring positive equity.
• Confirm whether there are any contingent liabilities or undisclosed financial commitments not reflected in the accounts.
• Clarify the status and plans of the directors who resigned in 2025 and potential impact on management stability.