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.