Company Number: 13455213

Analysis Date: 2025-07-29 18:15 UTC

1. Risk Rating: MEDIUM

Justification: Dartyl Ltd shows recent improvement in net assets and net current assets, moving from negative working capital in prior years to positive in the latest accounts. However, the presence of significant finance lease obligations introduces leverage risk. The company is small, privately held, and active with timely filings, which supports operational continuity but financial leverage and historical working capital deficits warrant moderate caution.

2. Key Concerns:

• Finance Lease Obligations: The company has £19,108 in finance lease liabilities, with £15,614 due beyond one year, which represents a material obligation relative to its net assets (£17,286). This financial leverage could strain cash flows if operating performance deteriorates.
• Historical Working Capital Deficits: Prior to 2024, the company consistently reported negative net current assets, indicating prior liquidity challenges that have only recently improved.
• Limited Financial Transparency: As a small company filing unaudited abridged accounts, detailed profitability and cash flow data are not publicly available, limiting assessment of ongoing operational performance and cash generation.

3. Positive Indicators:

• Positive Net Current Assets in 2024: The latest accounts show £6,932 net current assets, a turnaround from previous years, suggesting improved liquidity.
• Increasing Fixed Assets: Tangible fixed assets increased substantially in 2024 (£25,968 vs £7,944 prior), indicating investment in operational capacity.
• Timely Filing and Active Status: All statutory filings are up to date with no overdue returns or accounts, indicating good governance and compliance.

4. Due Diligence Notes:

• Review detailed profit and loss account and cash flow statements to assess profitability trends and cash generation capability.
• Examine the terms and impact of finance leases, including interest rates, repayment schedules, and covenants.
• Investigate customer concentration and debtor aging to evaluate receivables collectability and revenue stability.
• Confirm operational scale and contract pipeline to assess sustainability of recent liquidity improvements.