DEVAN SKUBAN LTD

Executive Summary

Devan Skuban Ltd shows significant solvency risk evidenced by negative net current assets and shareholders' funds as of February 2024. The company remains compliant with statutory filings but operates at a minimal scale with limited financial history. Further investigation into financial performance and cash flow is essential before considering investment exposure.

DEVAN SKUBAN LTD - Analysis Report

Company Number: 13887293

Analysis Date: 2025-07-20 16:50 UTC

1. Risk Rating: HIGH
   Justification: The company exhibits net current liabilities and negative shareholders' funds as of the latest financial year, indicating potential solvency issues. The limited scale and very recent incorporation also limit operating history for assessment.

2. Key Concerns:

• Negative net current assets (£(120)) and shareholders' funds (£(120)) reported in 2024, suggesting the company may struggle to meet short-term obligations.
• Rapid deterioration from positive net current assets (£202) and shareholders’ funds (£1,890) in 2023 to negative in 2024 without disclosed explanatory notes.
• Minimal scale of operations with only one employee (the director) and low asset base (£9,999 current assets), limiting operational resilience.

3. Positive Indicators:

• Company is active with no overdue filings, demonstrating compliance with statutory requirements.
• Sole director holds full control and is engaged in the business (designer occupation), which may facilitate swift decision-making.
• Micro-entity status and exemption from audit reduce administrative burdens for a small start-up.

4. Due Diligence Notes:

• Investigate the cause of the sharp decline in net current assets and shareholders’ funds between 2023 and 2024 (e.g., losses, increased liabilities).
• Request profit and loss information to understand revenue generation and expense trends, as this was not included in the micro-entity accounts.
• Assess cash flow projections and any external financing arrangements to evaluate liquidity and ongoing viability.
• Confirm if any director loans or related-party transactions exist beyond the disclosed zero balance at year-end.
• Verify business model sustainability given the very small scale and the nature of the artistic/design sector activities.