DAY CREATIONS LTD
Executive Summary
DAY CREATIONS LTD is a dormant private limited company with minimal financial activity and nominal net assets, resulting in a high risk profile due to lack of operating history and financial substance. While compliance with filing requirements is maintained, the absence of trading and recent changes in directors raise concerns about operational stability. Further investigation into the company’s plans for commencing business and management continuity is advised before considering any investment.
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This analysis is opinion only and should not be interpreted as financial advice.
DAY CREATIONS LTD - Analysis Report
Risk Rating: HIGH
The company is newly incorporated, dormant, and has nominal net assets (£1). There is no trading history or financial performance data to support operational viability. This presents a high risk from a solvency and liquidity standpoint.Key Concerns:
- Dormant status with no trading or revenue, implying no current cash flow or business operations.
- Minimal net assets and shareholder funds, indicating no financial buffer to meet obligations or fund operations.
- Recent director turnover and changes in PSCs may suggest governance instability or lack of consistent management.
- Positive Indicators:
- The company is compliant with statutory filing deadlines, with no overdue accounts or confirmation statements.
- Clear ownership structure with a PSC holding majority shares and voting rights, which may facilitate decision-making.
- No signs of insolvency proceedings or regulatory non-compliance to date.
- Due Diligence Notes:
- Investigate the company’s business plan and timeline for commencing trading activities to assess future viability.
- Review the reasons for director resignations and appointments to understand management stability and capacity.
- Confirm the status and intentions of the PSC(s), particularly in relation to capital contributions or operational plans.
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