Company Number: 13118559

Analysis Date: 2025-07-20 11:02 UTC

1. Credit Opinion: CONDITIONAL APPROVAL
   Delyn Warehousing (UK) Ltd demonstrates a significant financial turnaround in the latest year ending January 2024, moving from negative net assets and working capital to a positive net asset position of £117,399 and net current assets of £61,543. This improvement indicates enhanced ability to meet short-term liabilities and service debt. However, the company remains relatively young (incorporated 2021) with a small share capital (£100), and prior years show losses reflected in negative equity and poor liquidity. Approval should be conditional on ongoing monitoring of cash flow and profitability trends to confirm financial stability.

2. Financial Strength:
   The balance sheet shows the company has transitioned from a weak financial position with net liabilities in 2021-2023 to a positive net asset base in 2024. Tangible fixed assets (£70,331) provide some stability, though depreciation charges are substantial, indicating ongoing capital expenditure needs. The company’s retained earnings have shifted from a deficit of £53,057 to a positive reserve of £117,299, evidencing recent profitability or capital injection. Shareholders’ funds remain modest, reflecting a micro/small company scale.

3. Cash Flow Assessment:
   There is a strong cash position of £254,753 as of January 2024, which is a marked improvement from £74,232 the prior year. Current liabilities have decreased from £317,948 to £233,011, improving liquidity ratios and working capital. The company’s net current assets are positive (£61,543), suggesting sufficient short-term liquidity to cover operational needs. However, trade debtors have decreased significantly, which could reflect either improved collections or reduced sales; this should be monitored alongside cash flow from operations.

4. Monitoring Points:

• Maintain scrutiny on cash flow consistency and the ability to meet lease payments, which remain significant (£105,000 due within one year).
• Track profitability trends and retained earnings progress to ensure sustained recovery and capital adequacy.
• Monitor debtor days and credit control effectiveness given the drop in trade debtor balances.
• Watch for any increases in short-term creditors or accruals that may signal emerging liquidity stresses.
• Review any contingent liabilities or provisions that might impact future financial resilience.