Company Number: 12445731

Analysis Date: 2025-07-19 13:04 UTC

1. Risk Rating: MEDIUM
   DECOWITHSTYLE LTD shows some positive net asset growth and no overdue filings, indicating operational continuity. However, the financials reveal inconsistencies and concerns around current liabilities, director loans, and cash reserves that elevate risk moderately.

2. Key Concerns:

• Liquidity: The company’s cash balance dropped significantly from £3,324 in 2023 to £654 in 2024, coupled with a large portion of current assets tied up as debtors (£4,740), which may impede meeting short-term obligations promptly.
• Director Loans and Creditors: There is an outstanding director loan of £10,860 and a complex movement in creditors with amounts due after one year including bank loans and taxes. Also, the presentation of creditors and loans appears inconsistent, suggesting a need for clarity on financing structure and repayment terms.
• Inconsistent Financial Presentation: Notably, current liabilities are recorded as negative (£-3,068) in 2024, which contradicts typical accounting practice (liabilities normally positive), possibly indicating accounting or reporting anomalies that require further examination.

3. Positive Indicators:

• Growth in Net Assets: Net assets increased from £6,848 in 2023 to £14,113 in 2024, suggesting some retained earnings or asset accumulation.
• Compliance: The company is current with both accounts and confirmation statement filings and is not in liquidation or administration, indicating no immediate regulatory or governance issues.
• Fixed Assets Investment: The acquisition of tangible fixed assets (£7,259 net book value) indicates ongoing investment in operational capacity.

4. Due Diligence Notes:

• Verify the accounting treatment and classification of current liabilities and the reason for negative values reported.
• Clarify the nature, terms, and repayment status of director loans and bank loans to assess solvency impact.
• Assess debtor quality and collectability given their significant proportion of current assets relative to cash.
• Review cash flow statements (not provided) to better understand liquidity dynamics and operational cash generation.
• Confirm if the company’s turnover and profit trends justify the net asset growth and fixed asset investment.
• Investigate any related-party transactions given the director loan and its implications on governance.