DIOL SONA LTD

Executive Summary

DIOL SONA LTD presents a high financial risk profile due to its negative net assets and significant liquidity shortfall as of the latest accounts. While regulatory compliance is current and the business operates in a potentially scalable sector, the lack of profitability and working capital deficits raise concerns about solvency and operational sustainability. Further investigation into creditor composition and cash flow management is recommended to assess viability.

DIOL SONA LTD - Analysis Report

Company Number: 14014402

Analysis Date: 2025-07-29 15:55 UTC

1. Risk Rating: HIGH
   DIOL SONA LTD exhibits significant solvency risk as evidenced by its negative net assets of £31,257 and its net current liabilities position. The company has more than six times current liabilities relative to current assets, indicating liquidity challenges and potential inability to meet short-term obligations.

2. Key Concerns:

• Negative net assets and net current liabilities of £31,257 as of the 2024 year-end, reflecting financial distress and potential insolvency risk.
• Limited asset base with current assets of only £5,446, which is insufficient to cover the £36,703 of short-term creditors.
• The company is very young (incorporated in 2022) and classified as a micro-entity with minimal financial history and no audit, restricting transparency and increasing uncertainty about ongoing operational viability.

3. Positive Indicators:

• The company is compliant with all filing deadlines as of the latest data, indicating management attention to regulatory obligations.
• Controlled by a single director and 100% shareholder, which may facilitate swift decision-making and restructuring if needed.
• The business operates in online retail (SIC 47910), a sector with potential for scalable growth and low fixed costs.

4. Due Diligence Notes:

• Investigate the nature of the £36,703 current liabilities: creditor types, payment terms, and any overdue balances.
• Assess the company’s cash flow projections and plans to restore positive working capital or secure additional funding.
• Review the director’s plans for business development, profitability prospects, and any contingencies to address current negative equity.
• Confirm if there are any related party transactions or guarantees that could impact financial stability.
• Validate the operational status and customer base given the limited financial data and absence of profit and loss accounts filed.