DASHING DISTRIBUTION SOFTWARE LIMITED

Executive Summary

DASHING DISTRIBUTION SOFTWARE LIMITED exhibits a high risk profile primarily due to significant and increasing negative net current assets, indicating liquidity and solvency challenges. While recent growth in current assets and employee count suggests operational scaling, the absence of detailed financial performance data limits a comprehensive assessment. Further due diligence focusing on detailed financials and cash flow is essential to ascertain the company’s viability.

DASHING DISTRIBUTION SOFTWARE LIMITED - Analysis Report

Company Number: 13057652

Analysis Date: 2025-07-20 12:53 UTC

1. Risk Rating: HIGH
   The company’s financial statements report significant negative net current assets (liabilities) of £90,854 at the end of 2023, worsening from £66,245 in 2022, indicative of substantial short-term solvency issues. This puts the company at risk of being unable to meet its immediate obligations.

2. Key Concerns:

• Negative Net Current Assets: The balance sheet shows current liabilities (£184,236) exceeding current assets (£93,382) by a wide margin, signaling liquidity stress.
• Consistent Net Liability Position: The company has reported net liabilities (negative net assets) for the last two years, deteriorating from £66,245 in 2022 to £90,854 in 2023, undermining financial stability.
• Limited Financial Data and Lack of Profit/Loss Disclosure: The micro-entity accounts provide minimal detail, and no profit & loss figures or cash flow statements are available to assess operational performance or cash generation capabilities.

3. Positive Indicators:

• Growing Current Assets and Workforce: Current assets increased substantially from £3,007 in 2022 to £93,382 in 2023, alongside an increase in average employees from 3 to 6, which may indicate business expansion or increased operational activity.
• Timely Filings: The company is up to date with both accounts and confirmation statement filings, suggesting compliance with statutory obligations.
• Active Status with No Indication of Insolvency Proceedings: The company is active with no liquidation or administration status reported, and directors remain in place.

4. Due Diligence Notes:

• Obtain Full Financial Statements: Request detailed accounts including profit & loss and cash flow to evaluate operational viability and cash management.
• Review Director and Auditor Commentary: Seek management discussion or auditor notes (if any) for insights into going concern assumptions or contingent liabilities.
• Examine Trade Creditors and Debtors Aging: Investigate the composition of current liabilities and assets to understand liquidity pressures and potential collection risks.
• Assess Related Party Transactions and Director Loans: Given the modest shareholder capital (£100) and negative equity, check for undisclosed related party funding or director support.
• Validate Business Model Sustainability: Understand the revenue model in the software development sector and how the company plans to reverse the negative equity trend.