Company Number: 13142532

Analysis Date: 2025-07-20 17:07 UTC

1. Credit Opinion: CONDITIONAL APPROVAL
   Dayta Ltd demonstrates a strong balance sheet anchored by significant fixed asset investments (£1.5 million), reflecting ownership of a subsidiary (Dayta Designs Ltd). However, the company shows minimal current assets and cash (£50) and has a history of current liabilities that were previously very high (£175k in 2022) but now reduced to a nominal £177 at 2023 year-end. The drastic reduction in current liabilities is positive, but the company’s operating liquidity remains very low, limiting its ability to service short-term obligations without external support. Given the company is a holding entity with no reported employees and limited trading activity, credit risk is largely dependent on the underlying subsidiary and group support. Approval is recommended subject to assurance on the subsidiary’s performance and group liquidity support.

2. Financial Strength:
   The company’s net assets have increased from £1.325 million in 2022 to £1.5 million in 2023, driven primarily by stable fixed asset investments and elimination of significant current liabilities. Shareholders’ funds increased correspondingly. The balance sheet is strong in terms of equity and fixed assets, with no recorded debt financing. However, current assets and liquidity remain negligible, reflecting the holding company nature and absence of trading activity at this level. The company’s capital structure is sound but lacks operational cash resources.

3. Cash Flow Assessment:
   Cash at bank is nominal (£50), and net current assets are slightly negative (-£127), indicating very limited working capital. The company’s current liabilities have been drastically reduced, improving the short-term solvency profile, but the minimal cash and working capital position imply no internal capacity to cover unforeseen expenses or short-term obligations. Cash flow is likely supported or reliant on the parent company (Technology Services Group Limited) or subsidiary operations. This structure necessitates monitoring cash flow within the group to assess overall liquidity risk.

4. Monitoring Points:

• Monitor the financial performance and liquidity of Dayta Designs Ltd, as the holding company’s strength depends on it.
• Watch for any increases in current liabilities or deterioration in working capital at the holding company level.
• Ensure timely filings and transparency of group financials to assess credit risk holistically.
• Track any changes in shareholding or director appointments that might affect governance and control.