Company Number: 13855397

Analysis Date: 2025-07-20 16:19 UTC

1. Credit Opinion: DECLINE
   Dewise Limited demonstrates significant financial distress with deteriorating liquidity and net asset position. The company’s net current liabilities of £3,845 as of January 2025 and negative net assets of £2,368 indicate an inability to meet short-term obligations. The worsening working capital position compared to prior years and absence of substantial current assets raise serious concerns about repayment capacity. The business is very small (micro-entity) with minimal tangible assets and limited financial resilience. The sole director’s background as a nurse does not provide clear evidence of strong financial management expertise. Given these factors, extending credit would be high risk without substantial guarantees or collateral.

2. Financial Strength:
   The balance sheet shows a declining fixed asset base (£1,477 in 2025 vs. £1,969 in 2024) and a sharp drop in current assets (£50 in 2025 from £346 in 2024). Current liabilities remain high (£3,895), driving net current assets deeply negative. The company’s net liabilities position worsened from -£3,895 in 2024 to -£2,368 in 2025 after adjustments, reflecting ongoing erosion of equity. The negative shareholder funds suggest the company is effectively insolvent on a balance sheet basis.

3. Cash Flow Assessment:
   The very low current assets relative to current liabilities hint at severe liquidity constraints. With only one employee and minimal operational scale, the company likely has limited cash inflows and working capital flexibility. The absence of cash or equivalents reported suggests cash flow to service debt or operational expenses is insufficient. This raises material risk for short-term creditors and lenders.

4. Monitoring Points:

• Monitor liquidity ratios closely, especially current ratio and quick ratio, for improvement or further deterioration
• Track net asset movement and any capital injections or equity restructuring
• Review director’s management actions and plans to restore financial health
• Watch for timely filing of future accounts and confirmation statements as indicators of ongoing compliance and stability
• Assess any changes in business activity or scale that might affect cash flow generation