DIOME LIMITED

Executive Summary

Diome Limited demonstrates high financial risk characterized by substantial and growing negative working capital and shareholder deficits. While regulatory compliance is maintained and the director asserts a going concern status, the company’s operational and liquidity challenges warrant careful scrutiny of its funding arrangements and business viability. Prospective investors should conduct detailed due diligence on financial backing and future revenue prospects before engagement.

DIOME LIMITED - Analysis Report

Company Number: 13276149

Analysis Date: 2025-07-29 12:57 UTC

1. Risk Rating: HIGH
   The company exhibits significant solvency and liquidity concerns as evidenced by large and increasing net current liabilities and negative shareholder funds. These financial indicators suggest an inability to meet short-term obligations without external support.

2. Key Concerns:

• Severe Negative Working Capital: Net current liabilities have more than doubled from approximately £435k in 2023 to £964k in 2024, indicating a worsening liquidity position.
• Negative Shareholders' Funds: The company’s shareholders’ funds deteriorated from -£430k in 2023 to -£934k in 2024, signaling accumulated losses and potential insolvency risk.
• Absence of Revenue/Employee Base: No employees are reported, and the company is a micro entity in a research-intensive sector, which may imply limited operational activity or dependence on external funding.

3. Positive Indicators:

• Up-to-date Filings: The company is current with its accounts and confirmation statement filings, suggesting regulatory compliance and governance attention.
• Going Concern Assertion: The director states the company is a going concern with sufficient finance to meet obligations for at least 12 months, which may indicate access to external funding or backing.
• Focused Industry Classification: The company operates in biotechnology research, a sector with strong growth potential and investor interest, which could bode well if financial stability improves.

4. Due Diligence Notes:

• Funding Sources and Commitments: Investigate the nature and terms of any financing arrangements supporting the company’s negative working capital position.
• Business Model and Revenue Generation: Clarify the company's commercial strategy and current income streams, given the absence of employees and increasing liabilities.
• Director and Shareholder Support: Assess the financial capacity and willingness of the principal shareholder/director to continue supporting the company, including any personal guarantees or capital injections.
• Contingent Liabilities or Off-Balance Sheet Items: Examine if there are any undisclosed liabilities or commitments that may impair financial stability further.
• Historical Financial Trends: Review prior year financials in detail to understand the trajectory and reasons behind rapid deterioration.