DIAMOND CARWASH KENT LTD

Executive Summary

DIAMOND CARWASH KENT LTD demonstrates a low-risk profile with positive net current assets and consistent profitability. The company maintains good compliance and operational stability, although attention should be paid to the rising current liabilities, particularly VAT and tax obligations, to ensure ongoing liquidity. Further investigation into the nature of these liabilities and the business’s operational focus is recommended for a comprehensive risk assessment.

DIAMOND CARWASH KENT LTD - Analysis Report

Company Number: 13279826

Analysis Date: 2025-07-29 20:19 UTC

1. Risk Rating: LOW
   The company shows a positive net current assets position, consistent profitability reflected in retained earnings, and no overdue filings. Its liquidity position appears adequate to meet short-term obligations, suggesting low immediate solvency risk.

2. Key Concerns:

• Increasing Current Liabilities: Current liabilities rose from £9,313 in 2023 to £14,874 in 2024, a notable increase relative to current assets growth, which may pressure liquidity if unchecked.
• VAT and Tax Liabilities: Significant VAT (£5,056) and taxes/social security (£9,518) are outstanding, which could impact cash flow if these amounts become due simultaneously.
• Limited Capital Base: Share capital remains minimal at £100, with shareholders’ funds primarily reflecting retained earnings, which may limit financial flexibility for expansion or unforeseen expenses.

3. Positive Indicators:

• Positive Net Current Assets: The company maintains net current assets of £10,155 as of March 2024, indicating an ability to cover short-term liabilities.
• Consistent Profit Retention: The increase in profit and loss reserves from £9,759 to £10,055 reflects ongoing profitability and operational stability.
• Compliance and Timely Filings: No overdue accounts or confirmation statements, suggesting good regulatory compliance and governance practices.
• Stable Employment: The average number of employees remained steady at 5, indicating operational consistency.

4. Due Diligence Notes:

• Investigate the nature and timing of the increased current liabilities, specifically VAT and tax liabilities, to assess any potential cash flow timing issues.
• Review detailed profit and loss accounts (not provided) to confirm the sustainability of earnings and any seasonality or extraordinary items.
• Confirm any off-balance sheet liabilities or contingent liabilities that may affect solvency.
• Assess the business model given the SIC code (Hairdressing and other beauty treatment) versus the company name (Diamond Carwash Kent Ltd), to clarify operational focus and market positioning.
• Validate director background and governance practices, although no red flags are evident from the data provided.