Company Number: 12402209

Analysis Date: 2025-07-29 15:56 UTC

1. Credit Opinion: CONDITIONAL APPROVAL. Dewborn Support Services Ltd is a micro-entity with a very modest asset base and limited financial disclosures, typical for its size. The company shows positive net assets and equity growth over the last three years, indicating some financial improvement. However, current assets have dropped sharply in the latest year to £47 against current liabilities of £114, which raises concerns around short-term liquidity and working capital management. The absence of profit and loss data limits assessment of profitability and cash flow generation. Given these factors, credit approval could be granted but with limits on exposure and conditions requiring regular financial updates and possibly collateral or guarantees.

2. Financial Strength: The balance sheet is small but stable, with net assets increasing from £722 in 2020 to £2,438 in 2024. Shareholders’ funds have grown steadily, reflecting retained earnings or capital injections. The company’s asset composition is primarily current assets, but there was an unusual spike in prepayments and accrued income (£2,969) in 2024, likely inflating net current assets. The overall leverage is low, with no indication of long-term debt, which reduces financial risk. However, the significant decline in liquid current assets and reliance on accrued income/prepayments for working capital is a weakness.

3. Cash Flow Assessment: Liquidity appears constrained in the latest year, with current liabilities exceeding cash and receivables (current assets excluding prepayments). Net current assets improved nominally due to accruals/deferred income adjustments, but these are non-cash items. The company’s ability to meet short-term obligations may be dependent on the timing of receipt of accrued income and managing payables efficiently. Limited employee numbers (average 1) suggest a low fixed cost base, which may help in cash flow management. Nonetheless, the lack of profit and loss data and cash flow statement restricts a thorough evaluation of operational cash flows.

4. Monitoring Points:

• Monitor quarterly or interim financial statements focusing on current asset composition and liquidity ratios (current ratio and quick ratio).
• Track collections on accrued income and conversion to cash.
• Review any changes in working capital management and payment terms with suppliers.
• Observe any material changes in business scale or ownership structure.
• Confirm timely filing of future accounts and confirmation statements to maintain transparency.
• Assess director conduct and any new appointments affecting governance.