DINA ENGINEERING SOLUTIONS LIMITED

Executive Summary

Dina Engineering Solutions Limited operates with a small equity base and persistent working capital deficits, which pose moderate solvency and liquidity risks. The company complies with filing requirements and shows improving cash balances and growing trade debtors, suggesting operational activity. Further due diligence on debtor quality and liability management is recommended to better understand financial stability.

DINA ENGINEERING SOLUTIONS LIMITED - Analysis Report

Company Number: 12713967

Analysis Date: 2025-07-20 17:09 UTC

1. Risk Rating: MEDIUM

Justification: While the company is currently active and compliant with filing deadlines, the financial data reveals a persistent net current liability position and marginal net assets, which are potential solvency and liquidity concerns. The company’s small scale and limited equity base further elevate risk, though no evidence of regulatory or governance issues is apparent.

2. Key Concerns:

• Negative net current assets for the last three years (approx. -£941 in 2024), indicating liquidity constraints and a working capital deficit.
• Very low net assets (£426 in 2024) and minimal share capital (£100), suggesting limited financial buffer to absorb losses or support growth.
• Significant increase in current liabilities (from £45,915 in 2023 to £73,147 in 2024), especially taxation and social security liabilities, may indicate cash flow pressure or delayed payments.

3. Positive Indicators:

• The company has maintained timely filing of accounts and confirmation statements with no overdue reports, indicating good regulatory compliance.
• Cash balances have improved substantially from £44,934 in 2023 to £54,728 in 2024, showing better immediate liquidity despite working capital deficits.
• The business has grown its current assets, notably trade debtors appearing in 2024 (£17,478), which may reflect increased sales or contracts.
• The company employs 2 people consistently and has a director with relevant technical expertise (Data Engineer), supporting operational continuity.

4. Due Diligence Notes:

• Investigation into the composition and collectability of trade debtors is warranted to assess quality and timing of incoming cash flows.
• Clarification on the nature and aging of current liabilities, particularly tax and social security obligations, to understand payment risks.
• Review of profit and loss reserves and overall profitability trends, since only the balance sheet is available and the profit and loss account was not filed.
• Confirmation that the director’s conduct records are clean, given the company’s small size and director concentration of control.
• Assessment of contract pipeline and revenue recognition policies to evaluate sustainability of business activities in SIC 62090 sector.