DIESTA LIMITED

Executive Summary

Diesta Limited has demonstrated a marked financial turnaround in its most recent financial year, moving from historical losses to a strong net asset and liquidity position. The company maintains good regulatory compliance and shows signs of operational growth. However, early period losses and reliance on director support warrant further due diligence to confirm ongoing financial sustainability and business viability.

DIESTA LIMITED - Analysis Report

Company Number: 13969906

Analysis Date: 2025-07-29 19:28 UTC

1. Risk Rating: LOW
   The company shows a strong improvement in financial position over the last reported year, with significant positive net current assets and net assets. There are no overdue filings or signs of regulatory non-compliance.

2. Key Concerns:

• Initial losses and negative equity in the first two years (2022 and 2023) indicate early-stage financial strain before a strong recovery in 2024.
• Reliance on directors’ support for going concern assumption as stated in accounting policies; this may present a risk if director support wanes.
• The company operates in IT consultancy, which can be competitive and dependent on client retention and contract renewals; limited historical performance data available due to recent incorporation.

3. Positive Indicators:

• Significant turnaround in financial health in the year ended March 2024, with net assets rising to approximately £770k from a negative £14.7k.
• Strong liquidity position with cash balances over £759k and positive net current assets of £763k at latest year end.
• Compliance with filing deadlines for both accounts and confirmation statements, indicating good governance and regulatory compliance.
• Growing employee base (from 2 to 6 employees), suggesting operational scaling and business development.
• Active website presence aligned with stated SIC code activity, supporting transparency and marketing efforts.

4. Due Diligence Notes:

• Verify the sustainability of the cash position and the source of cash inflows in the latest year to confirm operational cash generation or capital injections.
• Review directors’ current accounts balances and any related party transactions to assess financial support and potential liabilities.
• Examine client contracts and revenue recognition policies, given turnover is recognized as monthly contracted fees.
• Assess the competitive position and business model viability in the IT consultancy sector, including client concentration risk.
• Confirm no director disqualifications or adverse conduct records exist for the current directors.