DH EVENT SERVICES LTD

Executive Summary

DH EVENT SERVICES LTD demonstrates solid financial growth and liquidity for a micro-entity within its first two years. The company's balance sheet is healthy with increasing net assets and strong working capital, indicating good short-term payment capacity. Credit approval is recommended with ongoing monitoring of cash flow and operational scale as the business develops.

DH EVENT SERVICES LTD - Analysis Report

Company Number: SC727752

Analysis Date: 2025-07-29 20:42 UTC

1. Credit Opinion: APPROVE with monitoring. DH EVENT SERVICES LTD is a micro-entity incorporated recently in 2022 and currently active. The company shows strong growth in net assets and working capital over the past two years, reflecting improved financial stability. The sole director and majority shareholder, David Harrower, appears committed and directly involved in operations. However, the company remains small with only one employee and limited fixed assets, indicating a modest operational scale. The credit facility should be moderate and subject to review of ongoing cash flow performance and business development to mitigate risk from size and early operational stage.

2. Financial Strength: The balance sheet shows net assets increased from £12,184 in 2023 to £23,742 in 2024, mainly driven by growth in current assets (£9.7k to £31k) exceeding a rise in current liabilities (£3.5k to £11.8k). Fixed assets have slightly decreased from £6,000 to £4,500 but represent a minor portion of total assets. The company has no long-term debt or provisions. Shareholders’ funds equal net assets, confirming no external equity dilution. Overall, the financial position is sound for a micro-entity, with a healthy net asset base and no long-term liabilities.

3. Cash Flow Assessment: Current assets (likely cash and receivables) of £31,042 against current liabilities of £11,800 yield a healthy net current asset position of £19,242, indicating sufficient short-term liquidity to meet obligations. The increase in current liabilities suggests higher operational payables or accruals but is well covered by current assets. With only one employee and presumably low overheads, working capital management appears effective. However, the absence of a detailed cash flow statement limits insight into operating cash generation and debt servicing capacity. Continued monitoring of cash inflows and outflows is recommended.

4. Monitoring Points:

• Track monthly cash flow and debtor collection to ensure liquidity remains adequate.
• Monitor any increase in short-term liabilities that may pressure working capital.
• Assess revenue growth and client diversification as the company matures.
• Review director’s continuing involvement and any changes in ownership structure.
• Watch for any significant capital expenditure or financing that could alter the financial profile.