DAY-DAKO DEVELOPMENTS LTD

Executive Summary

DAY-DAKO DEVELOPMENTS LTD maintains a strong fixed asset base and complies with filing requirements, but faces liquidity pressures due to current liabilities greatly exceeding current assets. While solvency is currently maintained, the reducing net assets and high short-term creditor balances warrant closer scrutiny of cash flows and debt obligations. Further investigation into creditor terms and asset valuations is recommended to fully assess financial stability.

DAY-DAKO DEVELOPMENTS LTD - Analysis Report

Company Number: 12801034

Analysis Date: 2025-07-20 15:38 UTC

1. Risk Rating: MEDIUM
   While DAY-DAKO DEVELOPMENTS LTD shows positive net assets and no overdue filings, substantial current liabilities relative to current assets signal liquidity pressure. The company’s micro-entity status limits available financial detail, but the large creditor balances due within one year versus modest current assets raise concerns about short-term solvency.

2. Key Concerns:

• Liquidity mismatch: Current liabilities (~£1.92M) significantly exceed current assets (~£120k) as of 2024, suggesting potential cash flow difficulties.
• Declining net assets: Net assets decreased from £221k (2023) to £163k (2024), indicating erosion of equity.
• Reliance on debt: Presence of creditors due after one year (£123k) and large short-term creditors may indicate heavy leverage or tight creditor terms.

3. Positive Indicators:

• Consistent asset base: Fixed assets remain stable above £2M, implying ongoing investment or property holdings.
• Timely statutory compliance: Accounts and confirmation statements are filed on time, demonstrating regulatory adherence.
• Single director with stable tenure: The sole director has been in position since incorporation, suggesting continuity in management.

4. Due Diligence Notes:

• Investigate the nature and terms of current liabilities to assess risk of default or refinancing needs.
• Review cash flow statements or management accounts to clarify liquidity position beyond the balance sheet snapshot.
• Understand asset valuation methods for fixed assets to confirm carrying values are realistic.
• Confirm any contingent liabilities or off-balance sheet obligations not disclosed in micro-entity accounts.
• Assess the business model’s sustainability given the negative working capital position.