Company Number: 13916943

Analysis Date: 2025-07-29 18:18 UTC

1. Credit Opinion: DECLINE
   Dealmonkey Limited demonstrates significant financial distress as evidenced by its growing negative net assets and net current liabilities over the last two years. The company’s net current liabilities worsened from -£3,987 in 2023 to -£42,920 in 2024, indicating liquidity issues and an inability to cover short-term debts with current assets. The negative shareholders' funds (-£43,020 in 2024) further reflect accumulated losses and insufficient capital base. Given this deteriorating financial position and lack of evidence of profitability or cash flow generation, the company poses a high credit risk and is unlikely to service new or existing debt obligations reliably.

2. Financial Strength:
   The balance sheet shows a highly leveraged and weak financial structure. The company holds current assets of only £39,161 against current liabilities of £82,081 in 2024, resulting in a substantial working capital deficit. Stock represents the majority of current assets (£29,275), which may not be readily convertible to cash. The absence of fixed assets and minimal debtors (£100) suggest limited long-term asset backing or receivables to support liabilities. The ongoing increase in net liabilities from -£3,987 in 2023 to -£42,920 in 2024 highlights erosion of capital and financial instability.

3. Cash Flow Assessment:
   Cash at bank improved modestly from nil in 2023 to £9,786 in 2024, but remains insufficient relative to current liabilities. The negative net current assets indicate that the company’s liquidity is strained, with working capital inadequate to meet short-term obligations. No information on operating cash flows is available, but the growing net liabilities and negative equity suggest cash outflows exceed inflows, putting pressure on day-to-day operations and creditor payments.

4. Monitoring Points:

• Track changes in net current assets and net liabilities for signs of stabilization or further deterioration.
• Monitor stock turnover and valuation to ensure inventory is not overstated and can be converted to cash.
• Watch for improvements in cash balances relative to short-term liabilities.
• Review any restructuring plans or capital injections by shareholders to shore up equity.
• Observe director and management changes, especially since one director resigned recently, to assess impact on governance and business continuity.