DC WORKFLOW LTD

Executive Summary

DC Workflow Ltd exhibits a high-risk financial profile with negative net assets and working capital deficits, compounded by zero cash balances and reliance on director loans. While regulatory compliance is maintained and ownership is concentrated, liquidity and solvency challenges present significant concerns for creditors and investors. Further due diligence on cash flow and debtor quality is essential to evaluate the company’s viability.

DC WORKFLOW LTD - Analysis Report

Company Number: 13296412

Analysis Date: 2025-07-29 14:17 UTC

1. Risk Rating: HIGH
   The company shows a deteriorating solvency position with net liabilities of £3,342 as of 31 March 2024, negative working capital, and an absence of cash reserves, which raises significant concerns about its ability to meet short-term obligations.

2. Key Concerns:

• Negative net current assets (£-10,678) and net liabilities indicate potential insolvency risk and difficulties in meeting immediate debts.
• Cash balance is zero despite significant current liabilities, implying liquidity constraints and possible reliance on receivables or director loans for operational cash flow.
• Dependence on director loans with fluctuating balances and unsecured status may signal external financing challenges and risk concentration.

3. Positive Indicators:

• The company remains active and compliant with filing deadlines, showing no overdue accounts or confirmation statements.
• Turnover recognition policies and accounting practices appear consistent with UK GAAP for small entities, indicating adherence to regulatory standards.
• Director ownership is 75-100%, potentially enabling swift decision-making and control over company strategies.

4. Due Diligence Notes:

• Investigate the aging and collectability of trade debtors (£6,870) and director loan account (£10,947), given their materiality to current assets.
• Review cash flow statements or management accounts (if available) to assess operational cash flow sufficiency and financing arrangements.
• Evaluate the nature and terms of the bank loan (£9,726) introduced in 2024 and its impact on ongoing liquidity and solvency.
• Understand the company's business model, order book, and future contract pipeline in the specialised construction sector (SIC 43999) to assess operational sustainability.
• Confirm the director’s intentions and capacity to support the company financially, given the reliance on director loans and equity depletion.