DEVSTRA LTD

Executive Summary

DEVSTRA LTD exhibits a high risk profile due to deteriorating net assets and critical liquidity shortfalls, casting doubt on its ability to meet financial obligations. Despite operational compliance and modest employee growth, the company’s financial position reflects ongoing losses and potential solvency challenges. Further investigation into cash flows, governance, and business viability is strongly recommended before considering investment.

DEVSTRA LTD - Analysis Report

Company Number: 14149782

Analysis Date: 2025-07-29 13:31 UTC

1. Risk Rating: HIGH
   The company shows a significant and worsening negative net asset position over recent years, indicating solvency issues. Current liabilities substantially exceed current assets, signaling poor liquidity and an inability to meet short-term obligations.

2. Key Concerns:

• Negative Net Assets and Working Capital Deficit: Net assets declined from £3,122 positive in 2022 to negative £8,305 in 2024 with net current liabilities worsening to £8,305. This indicates ongoing losses and erosion of equity.
• Minimal Current Assets: Reported current assets are virtually nil (£1 in 2024), suggesting little cash or liquid resources to cover debts.
• Recent Director Turnover and Governance: The same individual was appointed and resigned within a short period in 2024, which may indicate instability or governance concerns.

3. Positive Indicators:

• No Overdue Filings: Both accounts and confirmation statements are up to date, indicating compliance with Companies House filing requirements.
• Growing Employee Base: Average employees increased from 1 to 2, suggesting some operational activity and potential growth.
• Active Website and Communication Channels: The company maintains an active website with multiple contact points and social media presence, supporting ongoing business operations.

4. Due Diligence Notes:

• Examine Profit & Loss and Cash Flow Details: Limited data on profitability or cash flows is available; detailed financial statements or management accounts should be reviewed for revenue, expenses, and cash management.
• Investigate Director Stability and Background: Understand reasons for director resignation and reappointment; verify any related party transactions or governance issues.
• Assess Business Model and Revenue Sources: Given the SIC codes spanning engineering, management consultancy, and real estate agencies, clarity on actual business activities and revenue streams is needed.
• Confirm Related Party and Loan Arrangements: Explore whether related parties have provided funding or guarantees to support solvency.
• Review Capital Injection Plans: Determine if there are plans or capacity to recapitalize to restore positive net assets.

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