Company Number: 12843087

Analysis Date: 2025-07-20 15:50 UTC

1. Risk Rating: HIGH
   The company exhibits significant solvency and liquidity concerns, evidenced by very low net assets and persistent negative working capital. The high level of long-term creditors relative to total assets further elevates risk.

2. Key Concerns:

• Severe Negative Net Current Assets: Net current liabilities have been consistently negative for multiple years, reaching -£24,441 in the latest year, indicating ongoing liquidity stress.
• Minimal Net Assets and Shareholders’ Funds: Net assets have plummeted from £11,491 in 2023 to just £353 in 2024, suggesting erosion of equity and potential insolvency risk.
• High Long-Term Creditors: Creditors falling due after more than one year stand at £515,623 against total assets of approximately £677,000, implying significant debt burden that may strain the company’s financial stability.

3. Positive Indicators:

• Stable Fixed Assets Base: The company holds substantial fixed assets (~£548k), which may serve as collateral or indicate investment in operational capacity.
• No Overdue Filings: Accounts and confirmation statements are up to date, indicating compliance with regulatory filing requirements.
• Ownership and Control Clarity: Single significant control by Dr Mehroze Umar provides clear governance structure.

4. Due Diligence Notes:

• Examine Nature and Terms of Long-Term Creditors: Understanding the maturity profile, interest rates, and covenants on the substantial long-term liabilities is critical.
• Assess Cash Flow and Profitability Trends: Investigate the company’s cash generation ability and operational performance to evaluate if it can service debts and improve working capital.
• Review Fixed Assets Valuation and Liquidity: Verify if fixed assets are tangible and realizable to cover liabilities if required.
• Director’s Plans for Financial Recovery: Seek management commentary or plans on addressing the erosion of net assets and liquidity constraints.
• Confirm Absence of Related Party Transactions or Contingent Liabilities: Given the small shareholder base, ensure no undisclosed exposures exist.

executiveSummary
Dedo Limited faces high financial risk due to persistent negative working capital, a large long-term debt burden, and a dramatic decline in net assets. While compliance with filing obligations and asset base are positives, significant concerns remain around liquidity and solvency that warrant detailed investigation before investment consideration.