DIRECT HAULAGE SOLUTIONS LTD

Executive Summary

DIRECT HAULAGE SOLUTIONS LTD shows a declining financial position over its two years of operation but maintains positive net current assets and regulatory compliance. The company’s sole director and shareholder structure concentrates control, which may limit governance robustness. Further investigation into cash flow sustainability and the causes of financial decline is recommended before investment.

DIRECT HAULAGE SOLUTIONS LTD - Analysis Report

Company Number: 13869138

Analysis Date: 2025-07-20 13:29 UTC

1. Risk Rating: MEDIUM
   Justification: The company is relatively new (incorporated in 2022) and small (micro-entity status) with limited financial history. While it reports positive net assets and net current assets, there is a significant decline in net assets and current assets from 2023 to 2024, suggesting potential liquidity tightening. The sole director is also the majority shareholder, which concentrates control but limits external oversight.

2. Key Concerns:

• Declining Financial Position: Net assets decreased substantially from £45,693 in 2023 to £15,582 in 2024, with current assets dropping from £107,659 to £30,372, indicating possible cash flow constraints.
• Limited Operational Scale: The company employs only one person (the director) and holds minimal fixed assets (£1,880), which may affect operational resilience and capacity for growth.
• Concentrated Control and Governance Risk: The sole director and 100% PSC control by Mrs. Louise Angel Lee may pose governance risks, including lack of independent oversight.

3. Positive Indicators:

• Compliance and Timely Filings: The company is active, not overdue on accounts or confirmation statements, indicating good regulatory compliance.
• Positive Net Current Assets: Despite decline, current assets still exceed current liabilities by £13,702 as of 2024, suggesting ongoing ability to meet short-term obligations.
• Micro-Entity Reporting: Use of micro-entity reporting suggests simplified operations and low complexity, reducing some operational risks.

4. Due Diligence Notes:

• Investigate reasons behind the sharp decrease in net assets and current assets between 2023 and 2024—possible causes may include increased liabilities, reduced revenues, or asset disposals.
• Review cash flow statements and turnover figures (not provided here) to assess sustainability of operations and revenue trends.
• Assess any contingent liabilities or off-balance sheet obligations that might affect solvency.
• Confirm absence of any director disqualifications or regulatory issues beyond the provided data.
• Evaluate the business model and customer base given the single employee/director setup, to understand operational risks.