DEV GROUP LIMITED

Executive Summary

DEV GROUP LIMITED is a micro-entity start-up with limited financial history showing a small loss and negative net assets after its first year. The company’s current financial position is fragile, with cash flow tightness and reliance on creditor funding. Conditional credit approval is recommended with prudent limits and ongoing monitoring of cash flow, profitability, and debt servicing capacity to mitigate risk.

DEV GROUP LIMITED - Analysis Report

Company Number: 14723683

Analysis Date: 2025-07-19 12:24 UTC

1. Credit Opinion: CONDITIONAL APPROVAL
   DEV GROUP LIMITED is a newly incorporated micro-entity with a short trading history of just over one year. The company generated modest turnover (£322k) but reported a small loss (£2.7k) for the period ended 31 March 2024. The negative net asset position (£-2.7k) and balance sheet indicates initial start-up losses and some reliance on external financing (creditors > £46k). While the director is the sole shareholder and appears committed, absence of profitability and limited financial track record suggest cautious lending with conditions such as personal guarantees or restricted facility limits. Monitoring operational cash flow and profitability improvements will be critical before considering credit line increases.

2. Financial Strength:
   The company’s balance sheet is weak with net liabilities of £2,719. Fixed assets of £13,566 and current assets of £29,880 are insufficient to cover current liabilities (£46,165) and longer-term creditors, indicating potential liquidity pressure. Shareholders funds are negative, reflecting accumulated losses since inception. The small employee base (3 staff) and micro entity classification limit complexity but also scale. Overall, the financial position is fragile typical for a start-up; no reserves or retained earnings to absorb shocks.

3. Cash Flow Assessment:
   Current assets primarily consist of cash or receivables (£29,880) but are below current liabilities, suggesting tight working capital management. The absence of off-balance sheet liabilities is positive. However, staff costs (£280k) consume the bulk of turnover, leaving minimal margin to service debt. Cash flow risk exists if receivables slow or costs rise. The company needs to improve cash generation or secure additional funding to maintain liquidity.

4. Monitoring Points:

• Quarterly cash flow and working capital trends to ensure liquidity coverage of short-term obligations
• Profitability trajectory over next 1-2 years to move from loss to positive retained earnings
• Changes in creditor balances and debt structure to assess refinancing or repayment capacity
• Director’s ongoing financial support or injection of equity capital if required
• Compliance with timely filing to avoid regulatory penalties