DINNY-SQRD LTD

Executive Summary

Dinny-Sqrd Ltd is a newly formed micro-entity with no trading activity or turnover to date, resulting in sustained losses and negative net assets. The company shows weak financial strength with no cash flow generation, limiting its ability to service debt or credit facilities. Given the current financial profile and absence of operating activity, credit approval is not recommended at this time.

DINNY-SQRD LTD - Analysis Report

Company Number: 14356219

Analysis Date: 2025-07-20 15:17 UTC

1. Credit Opinion: DECLINE. Dinny-Sqrd Ltd is a recently incorporated micro-entity with no trading activity or turnover reported for the last two financial years. The company has accumulated losses increasing from £836 to £1,500 and has negative net assets and shareholder funds. There is no evidence of revenue generation or cash inflows to service any debt obligations. The current liabilities have doubled from £596 to £1,260 without any offsetting current assets reported, indicating a weak financial position and limited capacity to meet obligations. The absence of employees and activity suggests the business has not yet started operations or is dormant. This presents a high credit risk with weak financial strength and no cash flow visibility to support credit approval.

2. Financial Strength: The balance sheet shows persistent negative net assets (-£1,500 in 2024 vs -£836 in 2023) and shareholders’ funds, reflecting accumulated losses and an erosion of capital. Current liabilities have increased with no reported current assets or turnover to cover these liabilities, resulting in negative working capital. The company has no fixed assets or investments disclosed. Lack of tangible asset backing and negative equity position highlight inadequate financial strength.

3. Cash Flow Assessment: The Profit and Loss account reports no turnover and operating losses (£664 in 2024 and £936 in 2023). No employees or trading activity are recorded, suggesting no operating cash inflows. Without operating revenues or positive working capital, the company relies entirely on external funding (likely directors’ loans or shareholders’ investments) to meet liabilities. This lack of liquidity and cash generation capability means the company cannot service new debt or credit facilities.

4. Monitoring Points:

• Monitor for commencement of trading and generation of positive turnover.
• Watch for capital injections or external financing to improve net asset position.
• Track changes in current liabilities and whether these are being managed or settled.
• Review directors’ plans for business development or restructuring.
• Ensure timely filing of accounts and returns to assess ongoing financial health.