Company Number: 13243962

Analysis Date: 2025-07-20 17:38 UTC

1. Risk Rating: LOW to MEDIUM
   Decostayle UK Limited demonstrates positive net current assets and growing net asset value over the last three years, indicating an improving financial position. The company remains current with statutory filings and is not in liquidation or under any formal insolvency proceedings. However, the relatively low cash balance compared to debtors and the small scale of operations warrant a cautious approach.

2. Key Concerns:

• Liquidity Concentration: Cash reserves (£5,582 in 2024) are low relative to debtors (£55,322), which may pose short-term liquidity risks if receivables are not collected promptly.
• Debtor Reliance: High debtor balances relative to cash and current liabilities suggest potential exposure to customer payment delays or defaults.
• Limited Financial Disclosure: The accounts are unaudited and abridged, and no profit and loss account is publicly filed, limiting insight into operational profitability and cash flow generation.

3. Positive Indicators:

• Improving Net Assets: Net assets increased from £3,237 in 2021 to £56,108 in 2024, reflecting retained earnings and possibly profitable operations.
• Current Liabilities Manageable: Current liabilities are relatively low (£10,860 in 2024) and well covered by current assets, supporting short-term solvency.
• Compliance with Filings: No overdue accounts or confirmation statements, indicating adherence to regulatory requirements and good governance.
• Stable Management: Same director and secretary appointed since incorporation, suggesting stable leadership.

4. Due Diligence Notes:

• Review detailed profit and loss statements and cash flow data (if obtainable) to assess operating performance and cash generation.
• Investigate debtor aging profile and credit control procedures to understand credit risk and potential liquidity constraints.
• Confirm the nature of the business contracts and customer base, especially given the SIC code’s broad classification.
• Verify whether the parent company Decostayle B.V. exercises operational control or financial support, as it holds significant ownership.
• Assess any off-balance sheet liabilities or contingent risks not visible in abridged accounts.