DARK AS DAY APPAREL LIMITED

Executive Summary

Dark As Day Apparel Limited is currently financially distressed with negative net assets and significant working capital deficits. Its limited scale and deteriorating liquidity profile present high credit risk, leading to a recommendation to decline credit facilities at this stage. Close monitoring of liquidity and any management remedial actions is essential for future reassessment.

DARK AS DAY APPAREL LIMITED - Analysis Report

Company Number: 12915726

Analysis Date: 2025-07-20 18:46 UTC

1. Credit Opinion: DECLINE
   Dark As Day Apparel Limited exhibits a deteriorating financial position, with net liabilities of £6,702 as of 30 September 2024, down from net assets of £8,667 the previous year. The company is showing worsening working capital deficits and increasing current liabilities, indicating strained short-term liquidity. Additionally, the company operates in a competitive retail clothing segment with limited scale (micro-entity category) and only two employees, which limits operational flexibility. The absence of profitability data and reliance on directors’ reporting without audit further increases risk. Given these factors, extending credit would carry significant risk without substantial mitigating collateral or guarantees.

2. Financial Strength:
   The balance sheet reveals a decline in fixed assets and current assets alongside rising current liabilities, resulting in net current liabilities of £19,626 and overall negative net assets. The company’s shareholders’ funds have eroded, reflecting cumulative losses or capital withdrawals. The capital structure is weak, with no evidence of recent equity injections or debt restructuring. The company’s micro-entity status limits financial disclosure, but available data shows poor solvency and financial stress.

3. Cash Flow Assessment:
   Current assets comprise only £3,204 with a minimal cash component, insufficient to cover current liabilities of £22,830. The significant negative net current assets indicate a liquidity crunch and potential difficulties in meeting short-term obligations. The company’s working capital position has worsened compared to prior years, suggesting ongoing cash flow challenges. No detailed cash flow statement is provided, but the negative trends suggest operational cash generation is weak or negative.

4. Monitoring Points:

• Track changes in current liabilities and cash balances to detect worsening liquidity.
• Monitor equity injections or restructuring efforts by management to improve solvency.
• Watch for updated accounts or profit and loss disclosures to assess operational performance.
• Monitor trade creditor payment patterns and any indications of supplier pressure or defaults.
• Review director statements or filings for plans addressing financial distress or turnaround.