DILLY KITCHEN LTD

Executive Summary

Dilly Kitchen Ltd is a small, early-stage food service company with a modest positive net asset position and limited cash reserves. While the company shows some financial stability, its nascent stage and low liquidity require cautious credit extension with conditions to mitigate risk. Close monitoring of cash flow and operational progress is essential to support credit decisions going forward.

DILLY KITCHEN LTD - Analysis Report

Company Number: 14120559

Analysis Date: 2025-07-29 18:15 UTC

1. Credit Opinion: CONDITIONAL APPROVAL
   Dilly Kitchen Ltd is a very young, small-scale company active for just over three years with limited financial history and a modest asset base. The latest accounts show positive net assets (£673) and net current assets (£320), indicating some buffer above current liabilities. However, the company has minimal cash (£223) and no reported employees, which raises concerns about operational scale and cash flow generation. The director has significant control but limited evidence of financial track record. Credit can be extended but should be limited and closely monitored, with conditions on periodic financial updates and potentially personal guarantees or security given the size and early stage of the business.

2. Financial Strength:
   The balance sheet is small but positive. Fixed assets stand at £603 net, comprising plant and machinery, showing investment to support operations. Current assets of £478 exceed current liabilities of £158, producing net working capital of £320. There is a longer-term creditor balance of £250. Shareholders’ funds are £673, indicating equity backing. The absence of employees and minimal cash reserves suggest tight liquidity. Overall, the company meets the micro-entity thresholds with modest tangible assets and positive equity, but the financial base is fragile.

3. Cash Flow Assessment:
   Cash on hand is low at £223, which is just above current liabilities due within one year (£158). The working capital position is positive but limited. No employees are reported, which may reduce payroll obligations but also indicates low operational scale. The company’s ability to generate cash internally is unproven given no historical revenue or profit data disclosed. The lack of an audit and limited financial disclosures necessitate caution. Cash flow risk is moderate; the company may require short-term support to meet obligations if revenues are fluctuating or seasonal.

4. Monitoring Points:

• Quarterly or biannual updates on cash flow and bank balances.
• Confirmation of ongoing revenue streams and profitability.
• Any changes in creditor terms or increases in liabilities.
• Director’s financial commitments or personal guarantees.
• Evidence of operational scale-up and employee hiring.
• Timely filing of next accounts and confirmation statements.