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.