DD QUALITY DRIVES & PATIOS LTD

Executive Summary

DD Quality Drives & Patios Ltd is a micro-entity with a growing net asset base and positive working capital, demonstrating prudent financial management in its early years. Credit facilities may be approved on a limited basis with conditions focusing on ongoing liquidity and trading performance monitoring. The company’s small size and short trading history warrant cautious exposure but its improving financial position supports a positive credit view.

DD QUALITY DRIVES & PATIOS LTD - Analysis Report

Company Number: 13889370

Analysis Date: 2025-07-20 18:26 UTC

1. Credit Opinion: APPROVE with conditions.
   DD Quality Drives & Patios Ltd is a very young micro-entity, incorporated in 2022, showing positive growth in net assets and working capital in its first two years. The company demonstrates sound financial stewardship with no overdue filings. However, as a small start-up with limited trading history and a single director/shareholder, credit exposure should be limited initially and monitored closely. Approval is recommended for modest credit facilities, contingent on updated trading performance and cash flow transparency.

2. Financial Strength:
   The balance sheet shows steady improvement. Fixed assets increased from £3,885 to £20,120, indicating some investment in equipment or tools essential to their specialised construction activities. Current assets grew modestly to £17,819, while current liabilities slightly decreased to £10,331, resulting in a healthy net current asset position of £7,488 as of 29 Feb 2024 (up from £3,153). Shareholders’ funds increased substantially to £27,608, reflecting retained earnings and capital injection. Overall, the company’s net asset position is positive and improving, indicating sound solvency for a micro entity.

3. Cash Flow Assessment:
   Current assets exceed current liabilities with a net current asset ratio of approximately 1.7 times, suggesting adequate short-term liquidity. The company also benefits from director loans (£17,266 outstanding) which may provide additional informal liquidity support. However, as a small operation with only 2 employees, cash flow volatility could be a risk. No audit was conducted, so cash flow details are limited; hence, ongoing monitoring of receivables, payables, and cash reserves is critical.

4. Monitoring Points:

• Continued growth in net assets and working capital to support increased credit limits.
• Director loan balances and repayment capacity, ensuring these loans do not mask cash flow pressures.
• Timely filing of future accounts and confirmation statements to avoid compliance risk.
• Expansion of trading history and profit generation to reduce dependency on director funding.
• Maintain awareness of sector risks in specialised construction and any changes in the director’s personal credit standing.