DDP CONSULTING GROUP LTD

Executive Summary

DDP Consulting Group Ltd’s most recent accounts reveal a sharp decline in financial position with negative working capital and minimal net assets. This raises concerns about the company’s ability to service debt and sustain operations without external support. Credit exposure is not recommended at this stage without significant improvement or additional security.

DDP CONSULTING GROUP LTD - Analysis Report

Company Number: 12721215

Analysis Date: 2025-07-29 12:42 UTC

1. Credit Opinion: DECLINE
   DDP Consulting Group Ltd shows a significant deterioration in financial position over the latest year. Net current assets have swung from a positive £20,353 in 2023 to a negative £2,139 in 2024, indicating liquidity pressure. Total assets less current liabilities decreased sharply from £23,927 to just £243, reflecting a near depletion of net assets. This suggests the company may struggle to meet short-term obligations without additional funding. The absence of any declared significant control and minimal equity (£243) further weakens creditworthiness. Given these factors, the company currently presents a high risk for credit extension.

2. Financial Strength:
   The company is micro-sized with minimal fixed assets (£2,382) and relies heavily on current assets which have declined by over £5,000 year-on-year. Current liabilities have nearly doubled from £18,121 to £35,546, indicating increased short-term debt or payables. Shareholders’ funds have deteriorated by 99% from £23,927 to £243, signaling substantial erosion of equity base and financial stability. The balance sheet is weak with very limited net asset coverage, suggesting vulnerability to adverse financial events.

3. Cash Flow Assessment:
   Negative net current assets imply working capital deficits, potentially causing cash flow strains. The company may be reliant on short-term borrowing or creditor financing to support operations. No detailed cash flow statement is available, but the sharp increase in current liabilities relative to current assets is a warning sign of liquidity risk. The average number of employees remains at 1, indicating a lean operation but also limited capacity to generate cash internally.

4. Monitoring Points:

• Liquidity ratios (current ratio and quick ratio) going forward to detect further deterioration or improvement.
• Trends in current liabilities and whether these are being managed or are increasing unsustainably.
• Profitability indicators once available, to assess operational turnaround potential.
• Any capital injections or restructuring plans to restore equity and working capital.
• Payment history with suppliers and creditors to detect signs of payment delays or defaults.