DAYSTONE LTD

Executive Summary

DAYSTONE LTD is a micro-entity operating in the wholesale machinery sector with a small asset base and limited staffing, positioning it as a niche player. Financially, the company shows negative working capital and declining net assets, indicating liquidity pressures typical for small wholesalers facing current sector challenges such as supply chain disruptions and economic uncertainty. While solvent, DAYSTONE's competitive position requires prudent financial management to sustain operations amid market fluctuations common in the machinery wholesale industry.

DAYSTONE LTD - Analysis Report

Company Number: 12789055

Analysis Date: 2025-07-20 15:39 UTC

1. Industry Classification
   DAYSTONE LTD operates under SIC code 46690, classified as "Wholesale of other machinery and equipment." This sector typically involves the distribution and resale of machinery and equipment used across various industries, including manufacturing, construction, and agriculture. Key characteristics include capital-intensive inventory management, reliance on supplier and customer networks, and sensitivity to industrial demand cycles.

2. Relative Performance
   As a micro-entity with an average of 2 employees and share capital of only £100, DAYSTONE LTD is a very small-scale player in its industry. Its latest accounts show fixed assets around £73k and current liabilities exceeding current assets by approximately £46k, resulting in negative working capital. Net assets have decreased from £36.5k in 2023 to £24.7k in 2024, indicating some erosion of equity. Compared to typical SMEs in machinery wholesale—where positive working capital and stronger liquidity ratios are common—DAYSTONE’s financials suggest tighter financial constraints and potential liquidity risk. However, the company remains solvent with positive net assets and no indication of insolvency or overdue filings.

3. Sector Trends Impact
   The wholesale machinery sector has faced supply chain disruptions and inflationary pressures in recent years, which can affect inventory valuation and working capital requirements. Additionally, demand is influenced by capital expenditure trends in client industries, which may fluctuate with economic cycles and Brexit-related trade adjustments. For a micro-entity like DAYSTONE LTD, these dynamics can translate into tighter margins and cash flow challenges, especially if credit terms with suppliers and customers are not favourable. The company’s negative net current assets may reflect these pressures or strategic inventory holding.

4. Competitive Positioning
   DAYSTONE LTD appears to be a niche or micro-level participant rather than a market leader or significant follower. Its small asset base and minimal staffing limit scale advantages and market reach typical of larger wholesalers. Strengths include a focused operation with presumably low overheads and potential agility in niche markets. Weaknesses include limited liquidity evidenced by negative working capital and modest equity, which constrain growth and the ability to absorb shocks. The presence of an experienced commercial director suggests some level of professional management, but the company will need to carefully manage cash flows and supplier relationships to remain competitive.