DEVELOPMENT IMPACT GROUP HOLDINGS LTD

Executive Summary

Development Impact Group Holdings Ltd is a newly incorporated micro entity showing significant financial weakness with negative net assets and poor liquidity. The company’s current financial position and lack of trading history present high credit risk, leading to a recommendation to decline credit facilities at this time. Close monitoring of future financial performance and capital structure is essential before reconsidering credit exposure.

DEVELOPMENT IMPACT GROUP HOLDINGS LTD - Analysis Report

Company Number: 15168911

Analysis Date: 2025-07-20 19:13 UTC

1. Credit Opinion: DECLINE
   Development Impact Group Holdings Ltd shows significant financial weaknesses for credit approval. The company, incorporated recently in September 2023, reports net liabilities of £3,947 by December 2024, indicating negative equity and poor financial standing. The net current liabilities of £2,768 and total creditors due within one year at £2,850 suggest liquidity stress and inability to meet short-term obligations. Without positive cash flows or assets to cover liabilities, the risk of default is high. Given the absence of operating history, the micro entity status, and negative net assets, extending credit at this stage is not advisable.

2. Financial Strength:
   The balance sheet is weak with minimal fixed assets (£21) and very limited current assets (£82) compared to current liabilities of £2,850. The company operates at a net liability position of nearly £4,000. Accruals and deferred income of £1,200 further burden the liability side. Shareholders funds are negative, reflecting accumulated losses or initial capital shortfall. This financial structure lacks resilience and indicates the company is either in a startup phase without sufficient capital injection or already under financial distress.

3. Cash Flow Assessment:
   Current assets are very low relative to current liabilities, resulting in a working capital deficit of £2,768. This suggests poor liquidity and insufficient short-term resources to cover debts as they fall due. The company’s ability to generate positive cash flows is unproven given the short trading period and no indication of revenues or profits. The directors’ occupations suggest some financial and banking expertise, but the company requires improved cash management or external funding to sustain operations.

4. Monitoring Points:

• Monitor future filings for evidence of capital infusion or asset growth to improve net asset position.
• Track working capital and liquidity ratios in subsequent accounts to assess improvement or deterioration.
• Review turnover and profitability trends to gauge operational viability and cash generation capacity.
• Observe director and shareholder activity for signs of restructuring or refinancing efforts.
• Watch for any overdue filings or changes in company status indicating distress.