DDL HGV WORK LTD

Executive Summary

DDL HGV WORK LTD is a small micro entity with minimal financial resources but currently solvent and active. The company’s financial position is weak with limited assets and no employees, indicating low operational scale. Conditional approval is recommended with close monitoring of liquidity and business performance to ensure credit risks remain manageable.

DDL HGV WORK LTD - Analysis Report

Company Number: 12616998

Analysis Date: 2025-07-29 16:30 UTC

1. Credit Opinion: CONDITIONAL APPROVAL
   DDL HGV WORK LTD is a micro entity with minimal financial history and very modest net assets (£2,910 as of May 2024). The company appears solvent with positive net current assets but has no employees and limited asset base. Given its recent formation (2020) and small scale, it demonstrates low risk exposure but also limited financial strength. Approval is conditional on the company demonstrating consistent cash flow generation and maintaining positive working capital, as well as providing further trade references or cash flow forecasts if larger credit facilities are requested.

2. Financial Strength:
   The balance sheet shows a very small scale operation with total net assets of only £2,910. There are no fixed assets disclosed, and current assets consist presumably of cash or equivalents. The company’s equity increased from £1 in prior years to £2,910 in the latest year, indicating some positive development but still at a minimal level. Lack of debt is a positive factor, but the thin capitalization means limited buffer against adverse events. Overall, financial strength is weak due to the micro scale and absence of significant tangible or intangible assets.

3. Cash Flow Assessment:
   Net current assets are positive at £2,909, indicating some liquidity. However, the lack of employees and minimal asset base suggest the company operates on a very small scale, likely with limited cash flow generation. No detailed cash flow statements are present, so the ability to reliably service debt or absorb shocks is uncertain. Monitoring actual cash inflows and outflows is vital prior to extending any credit beyond a nominal amount.

4. Monitoring Points:

• Maintain positive net current assets and liquidity levels
• Track any growth in turnover and profit to support debt servicing capacity
• Monitor timely filing of accounts and confirmation statements
• Observe director’s management actions for financial prudence
• Watch for any significant changes in business activity, especially in temporary employment or freight transport sectors
• Request periodic cash flow forecasts if credit facilities increase