DAREY LIMITED

Executive Summary

DAREY LIMITED shows signs of financial stress primarily due to worsening liquidity and a high level of creditors relative to assets, resulting in a high-risk rating. While the company remains compliant with filing requirements and has stable ownership, the significant negative working capital and declining net assets raise concerns about its ability to meet short-term obligations and sustain operations without remedial action. Further detailed financial and operational due diligence is recommended to better understand the underlying issues and future prospects.

DAREY LIMITED - Analysis Report

Company Number: 13557112

Analysis Date: 2025-07-29 20:25 UTC

1. Risk Rating: HIGH
   The company exhibits significant liquidity concerns with negative net current assets and increasing current liabilities well exceeding current assets. There is also a notable decline in net assets and shareholder funds over the last two years. The high level of creditors due after one year relative to total assets signals potential solvency risk.

2. Key Concerns:

• Negative net current assets of £83,664 as of 31 August 2024, worsening from £29,792 in 2023, indicating liquidity stress and potential cash flow difficulties.
• Current liabilities (£83,601) and non-current creditors (£87,320) are substantial compared to total assets, suggesting leverage and solvency risks.
• Declining net assets from £44,150 in 2021 to £28,785 in 2024, reflecting erosion of equity and possible accumulated losses or asset impairments.

3. Positive Indicators:

• The company remains active, with no overdue filings for accounts or confirmation statements, demonstrating compliance with regulatory requirements.
• Ownership and control are consolidated under a single director and significant shareholder, which may facilitate swift decision-making.
• Fixed assets, particularly intangible assets (goodwill), have increased slightly, indicating some investment in business value.

4. Due Diligence Notes:

• Investigate the nature and terms of the substantial creditors falling due after more than one year (£87,320) to assess repayment risks and covenant obligations.
• Clarify the reasons behind the negative current assets, especially the negative debtor balance (-£68) and minimal cash (£5), to understand working capital management and collectability.
• Review the company's profitability trends and cash flow statements (not provided) to evaluate operational sustainability and potential for turnaround.
• Confirm whether the goodwill balance (£198,970) is supported by recoverable value or if impairment risks exist, given declining equity.
• Assess the business model under SIC code 74909 to understand market conditions and revenue stability, as turnover figures are not provided.