DELTACOM NETWORK LIMITED

Executive Summary

DELTACOM NETWORK LIMITED is a newly formed micro-entity with minimal financial history and a first-year loss. Its very limited asset base and negative profitability indicate it is not currently capable of servicing debt or sustaining credit risk. Continued monitoring of financial performance and cash flow is essential before reconsidering credit exposure.

DELTACOM NETWORK LIMITED - Analysis Report

Company Number: 15434949

Analysis Date: 2025-07-29 20:17 UTC

1. Credit Opinion: DECLINE. DELTACOM NETWORK LIMITED is a recently incorporated micro-entity with minimal operating history and a significant loss in its first financial period. The company reported a turnover of only £25,700 against cost of materials of £34,400 resulting in an £8,700 loss. The absence of positive earnings combined with minimal net assets (£800) and current assets indicate limited financial capacity to meet debt obligations. There is no evidence of profitability or cash generation, making the company a high credit risk at this stage.

2. Financial Strength: The balance sheet shows very limited financial resources with net current assets and net assets of just £800. There are no fixed assets reported, indicating a lack of tangible collateral. Shareholders’ funds match net assets, reflecting a small capital base. The company's micro-entity status and very low turnover further illustrate its early stage and limited scale. The absence of an audit and reliance on micro-entity exemptions reduce financial transparency.

3. Cash Flow Assessment: Current assets of £800 against presumably low current liabilities suggest a small positive working capital, but the absolute cash/liquid position is minimal. The loss incurred implies negative operating cash flow. With only one employee and minimal turnover, the company’s cash inflows are unlikely sufficient to cover operating costs, capital expenditure, or service debt. Liquidity is fragile, and any unexpected expenses or delays in receivables could cause cash flow stress.

4. Monitoring Points:

• Monitor subsequent financial periods for improvement in turnover and profitability.
• Watch for increases in net assets and tangible fixed assets.
• Track working capital trends and liquidity ratios.
• Observe management’s ability to control costs and generate positive cash flow.
• Review any changes in ownership or director appointments that may affect governance and control.