DEEP VENTURES LTD

Executive Summary

Deep Ventures Ltd is a newly incorporated micro-entity in the take-away food segment with a weak balance sheet showing net liabilities and negative working capital. The company currently lacks the financial strength and liquidity to support additional credit without significant risk. Close monitoring of future financial performance and cash flow improvements is essential before reconsidering credit extension.

DEEP VENTURES LTD - Analysis Report

Company Number: 15238179

Analysis Date: 2025-07-20 17:56 UTC

1. Credit Opinion: DECLINE
   Deep Ventures Ltd currently exhibits weak financial health with significant net liabilities and a negative working capital position. The company’s net liabilities of £13,418 and net current liabilities of £13,662 indicate that it does not have sufficient short-term assets to cover its short-term liabilities. As a newly incorporated micro-entity (incorporated in October 2023), with only one year of financial data and negative equity, it lacks an established track record of profitability or financial resilience. The take-away food retail sector can be competitive and subject to operational risks, and with minimal fixed assets and a small employee base (3 employees), the company’s ability to generate stable cash flow to service debt is uncertain. Without additional collateral, guarantees, or proven cash flow, this company presents a high credit risk.

2. Financial Strength:
   The balance sheet shows total fixed assets of only £244, current assets of £10,644, but current liabilities of £24,306, resulting in net current liabilities of £13,662. The net liabilities position of £13,418 means shareholders’ funds are negative, reflecting accumulated losses or initial funding deficits. This weak capital structure signals undercapitalization and potential solvency concerns if losses continue. The micro-entity exemption status means limited disclosure and no audit, restricting insight into detailed financial performance or cash flow. Overall, the financial strength is currently poor.

3. Cash Flow Assessment:
   The negative net current assets indicate liquidity constraints. The company’s current liabilities exceed current assets by a substantial margin, implying potential difficulty meeting short-term obligations as they fall due. Without positive cash flow or external funding, the company may face cash flow shortfalls. The small asset base and early stage of operations increase dependency on ongoing funding support from the sole director/shareholder or external sources. No evidence of cash flow from operations is provided, but the negative equity and working capital position highlight a liquidity risk.

4. Monitoring Points:

• Track subsequent annual accounts for improvement in net assets and profitability.
• Monitor changes in working capital—especially reduction in current liabilities or increase in receivables/cash.
• Watch for any director loans or funding injections by Mrs Ramandeep Kaur to support liquidity.
• Review trade creditor aging and any overdue payments indicating stress.
• Assess business performance indicators in the take-away food sector that might impact revenue stability.
• Confirm timely filing of future accounts and confirmation statements.