DEEBAN CONTRACTS LIMITED

Executive Summary

Deeban Contracts Limited is a start-up entity with a limited financial track record and modest net current assets. While it shows a positive working capital position, the company's very low cash reserves and thin equity base present liquidity risks. Conditional credit approval is recommended with emphasis on monitoring receivables collection, cash flow, and financial performance as the business establishes itself.

DEEBAN CONTRACTS LIMITED - Analysis Report

Company Number: 15349470

Analysis Date: 2025-07-29 18:14 UTC

1. Credit Opinion: CONDITIONAL APPROVAL
   Deeban Contracts Limited is a newly incorporated private limited company (Dec 2023) operating in the floor and wall covering sector. The company has minimal operating history reflected in its first set of unaudited abridged accounts to 31 Dec 2024. The financial position shows a marginal positive net current asset position (£1,837), but very thin working capital and negligible cash (£98). Given the company's infancy and limited track record, credit approval should be conditional on close monitoring of trading performance and cash flow trends to ensure sustainability and ability to meet debt obligations.

2. Financial Strength:
   The balance sheet is small and reflects a start-up phase with total current assets of £66,259, dominated by trade debtors (£66,161). Current liabilities are close at £64,422, leaving a modest net current asset buffer. The company has no fixed assets and shareholders’ funds of £1,837, indicating a low equity base. This thin capitalization and tight liquidity suggest limited financial resilience to absorb shocks or delays in receivables collection.

3. Cash Flow Assessment:
   Cash on hand is negligible (£98), highlighting potential liquidity constraints. The high debtor balance relative to cash indicates dependency on timely collection of receivables to fund operations and settle liabilities. Working capital is positive but minimal, underscoring the importance of efficient credit control and supplier payment management. The absence of cash flow statements limits deeper cash flow analysis, but current data suggest tight short-term liquidity.

4. Monitoring Points:

• Debtor collection periods and aging profile to detect any slow-paying customers that could impair liquidity
• Cash flow generation trends as operating history develops, including timing of cash receipts versus payments
• Changes in current liabilities and any increase in short-term borrowing or overdue payables
• Profitability and retained earnings development in subsequent accounts filings
• Continued compliance with filing deadlines and any changes in director or ownership structure impacting governance