DEV LOGISTIC SOLUTIONS LTD

Executive Summary

DEV LOGISTIC SOLUTIONS LTD exhibits high financial risk due to sustained negative equity and working capital deficits, raising serious solvency and liquidity concerns. Despite regulatory compliance and a tangible asset base, the company’s ongoing losses and reliance on finance leases suggest operational instability. Detailed cash flow analysis and business viability assessment are recommended before considering investment.

DEV LOGISTIC SOLUTIONS LTD - Analysis Report

Company Number: SC686646

Analysis Date: 2025-07-29 16:16 UTC

1. Risk Rating: HIGH
   The company shows significant negative net assets and net current liabilities which indicate solvency and liquidity challenges. The continued erosion of shareholders’ funds over three years is a strong red flag.

2. Key Concerns:

• Negative Net Assets: The company has net assets of -£14,302 as of the latest accounts, worsening from -£6,805 the prior year, reflecting accumulated losses exceeding equity.
• Negative Working Capital: Current liabilities (£32,109) exceed current assets (£16,116) by nearly £16k, suggesting the company may struggle to meet short-term obligations.
• Dependence on Finance Leases: Substantial long-term liabilities (£18,083) are tied to finance leases/hire purchase contracts, indicating ongoing fixed debt commitments with diminishing asset backing.

3. Positive Indicators:

• Timely Filings: The company is up to date on both accounts and confirmation statement filings with no overdue notices, showing regulatory compliance.
• Single Director Control: Clear ownership and control by a single director (Mr Dragomir Petkov) may facilitate decisive management actions.
• Modest Asset Base: The company holds tangible fixed assets (motor vehicles) valued at just under £20k, which support some operational capacity.

4. Due Diligence Notes:

• Review Cash Flow Statements: Assess cash flow trends to determine if operational cash generation is sufficient to service liabilities and finance lease payments.
• Understand Causes of Losses: Investigate the business model and income statements to clarify why losses are accumulating and if turnaround plans are in place.
• Assess Lease Terms: Examine finance lease agreements for covenants, payment schedules, and potential refinancing risks.
• Confirm Customer Base and Contracts: Given the SIC codes (unlicensed carrier, software development, other services), verify revenue streams and client stability.
• Director Background Check: Although no disqualifications are noted, further review of the director’s track record and financial capacity may be prudent.