DECENT VENTURES LIMITED

Executive Summary

Decent Ventures Limited shows significant solvency and liquidity risks, with negative net assets and high long-term liabilities exceeding fixed assets. While the company complies with filing requirements and has engaged directors, the financial position indicates potential difficulties in meeting obligations without further capital support or operational improvements. Further due diligence on creditor terms and cash flow is essential before investment consideration.

DECENT VENTURES LIMITED - Analysis Report

Company Number: 12838507

Analysis Date: 2025-07-20 15:31 UTC

1. Risk Rating: HIGH
   The company exhibits a concerning negative net asset position (shareholders’ funds are negative at -£14,225 for 2024), indicating liabilities exceed assets. This suggests solvency risk despite being a micro-entity. The persistent high level of long-term creditors (£134k+) relative to modest fixed assets (~£118k) and very low current assets (~£2.5k) also raises liquidity concerns.

2. Key Concerns:

• Negative net assets and negative equity indicate the company is technically insolvent on a balance sheet basis.
• High long-term liabilities exceeding fixed assets suggest potential difficulties in meeting debt obligations if cash flow is insufficient.
• Very low current assets versus current liabilities indicate limited working capital and potential cash flow constraints, risking operational continuity.

3. Positive Indicators:

• The company remains active with up-to-date filings, showing compliance with statutory obligations.
• Directors appear stable and personally invested, with both directors controlling 25-50% of shares and voting rights, which can align interests.
• The business operates in real estate (buying, selling, leasing), which can provide tangible asset backing and potential for cash generation if managed well.

4. Due Diligence Notes:

• Investigate the nature and terms of the long-term creditors to understand repayment schedules, interest, and security arrangements.
• Review the company’s cash flow statements and management accounts (not provided) to assess ongoing liquidity and operational cash generation.
• Understand the business model, revenue streams, and profitability trajectory, especially given the micro-entity status and low turnover thresholds.
• Confirm if any contingent liabilities or off-balance sheet obligations exist that may exacerbate solvency risk.
• Assess directors’ plans for financial restructuring or capital injection to restore positive equity.