DAS HC SERVICES LTD

Executive Summary

DAS HC Services Ltd shows high financial risk due to substantial negative net current assets and shareholders’ funds, indicating solvency and liquidity challenges. While compliance with filing obligations is current and directors maintain a going concern stance, reliance on related party financing and lack of profitability data suggest caution. Further investigation into cash flows, business viability, and intra-group support arrangements is advised before investment consideration.

DAS HC SERVICES LTD - Analysis Report

Company Number: 14470925

Analysis Date: 2025-07-20 12:02 UTC

1. Risk Rating: HIGH
   The company exhibits significant solvency and liquidity risks, evidenced by substantial negative net current assets and shareholders’ funds. The balance sheet shows liabilities far exceeding the assets, raising concerns about its ability to meet short-term obligations.

2. Key Concerns:

• Severe Negative Working Capital: Current liabilities of £40,295 vastly exceed current assets of £1,247 (mainly cash), resulting in a net current liability of £39,048, indicating acute liquidity pressure.
• Persistently Negative Equity: Shareholders’ funds are negative at £38,227, reflecting accumulated losses or funding shortfalls since incorporation in 2022.
• Significant Related Party Debt: The company owes £39,570 to Radfield Home Care Limited, a related entity with directors in common, which may suggest reliance on intra-group financing rather than operating cash flow.

3. Positive Indicators:

• Active Status with Up-to-Date Filings: The company is active, not in liquidation, and has no overdue accounts or confirmation statement filings, showing compliance with statutory requirements.
• Directors’ Going Concern Statement: Directors have adopted the going concern basis, indicating they believe the company can continue operating, possibly supported by related party arrangements.
• Low Fixed Asset Level: Tangible fixed assets are minimal (£822), limiting capital tie-up and potentially allowing flexibility in operations or disposal if needed.

4. Due Diligence Notes:

• Examine Cash Flow and Funding Sources: Investigate how the company plans to meet its liabilities given the negative working capital, especially the nature and terms of related party debt.
• Review Business Model and Revenue Generation: Limited information on turnover or profitability is provided; understanding operational sustainability and revenue streams is critical.
• Assess Directors and Related Party Relationships: The shared directors and significant related party balances warrant scrutiny for potential conflicts or financial support mechanisms.
• Clarify Absence of Profit and Loss Account: The directors have elected not to include a profit and loss account in filings; obtaining this information may provide insight into operational performance.