DETOUR LTD

Executive Summary

DETOUR LTD is a newly formed micro-entity in the real estate sector with weak financial indicators including negative net assets and working capital deficits. The company’s limited operating history and tight liquidity position present a high credit risk. Credit is declined until there is evidence of improved financial stability and cash flow generation.

DETOUR LTD - Analysis Report

Company Number: 15385435

Analysis Date: 2025-07-29 19:38 UTC

1. Credit Opinion: DECLINE
   DETOUR LTD demonstrates a weak financial position with negative net assets of £9,125 and net current liabilities of £360. The company is newly incorporated (January 2024) and operates as a micro-sized real estate agency, with no employees and minimal fixed assets (£949). The high level of creditors due after one year (£8,919) relative to total assets points to potential difficulties in meeting long-term obligations. The absence of operational scale and an unproven track record increase credit risk significantly. Without evidence of positive cash flow or profitability, extending credit is not advised at this stage.

2. Financial Strength:
   The balance sheet shows an early-stage company with limited asset base and negative equity. Fixed assets are minimal, and current liabilities slightly exceed current assets, resulting in negative working capital. The company is reliant on external financing, as indicated by long-term creditors exceeding total assets less current liabilities. The negative shareholders' funds imply accumulated losses or initial funding shortfalls. Overall, the financial strength is weak, reflecting vulnerability to adverse financial events.

3. Cash Flow Assessment:
   Current assets (£8,604) mainly represent short-term resources, but these are insufficient to cover current liabilities (£8,964), producing a net current liability of £360. This indicates tight liquidity and potential short-term cash flow constraints. The lack of employees and operational data suggests minimal business activity to generate cash inflows. The sizeable creditors due after one year also suggest ongoing repayment obligations that may strain liquidity further. Without positive cash flows or working capital improvements, the company’s ability to service debt remains uncertain.

4. Monitoring Points:

• Track quarterly cash flow statements to identify improvements or deterioration in liquidity.
• Monitor upcoming filings for profit/loss trends to assess operational viability.
• Review any changes in creditor balances, especially long-term debt levels.
• Observe director actions and any capital injections to strengthen equity.
• Watch for compliance with filing deadlines and any changes in company status or management.