DIRECT SECURE SOLUTIONS LTD

Executive Summary

Direct Secure Solutions Ltd is in a precarious financial position with deeply negative working capital and shareholders’ funds, indicating a high risk of default. The company’s liquidity is insufficient to meet short-term liabilities, and no signs of financial recovery are evident. Credit facilities should be declined unless significant and credible turnaround actions are demonstrated.

DIRECT SECURE SOLUTIONS LTD - Analysis Report

Company Number: 13815189

Analysis Date: 2025-07-20 18:56 UTC

1. Credit Opinion: DECLINE
   Direct Secure Solutions Ltd exhibits significant financial distress, shown by persistent negative net current assets and shareholders’ funds, deteriorating from -£6,022 in 2022 to -£12,092 in 2023. The company’s current liabilities (£27,386) vastly exceed current assets (£2,789), indicating an inability to meet short-term obligations. There is no indication of profitability or cash flow improvement, and the company operates with only one employee, suggesting limited operational capacity. Given these factors, the risk of default is high and credit approval is not recommended.

2. Financial Strength:
   The company’s balance sheet reveals a weak financial position. Tangible fixed assets are modest (£12,509) and have slightly declined from previous year. Current liabilities are nearly ten times the current assets, resulting in a net current liabilities position of -£24,597. Negative shareholders’ funds and net liabilities (-£12,088) reflect accumulated losses and erosion of equity. The absence of retained earnings and continued capital erosion indicate poor financial health and limited buffer against adverse events.

3. Cash Flow Assessment:
   Cash reserves are minimal (£368) and have substantially decreased from £2,281 in 2022. Debtors remain steady but small (£2,421), and there is no evidence of significant cash inflows to reduce liabilities. The substantial shortfall in working capital strongly suggests liquidity constraints. The company’s ability to generate positive operating cash flow appears limited, and the overdraft or short-term creditor balances may not be sustainable without external funding or capital injection.

4. Monitoring Points:

• Monitor any improvements in net current assets and cash balances.
• Track profitability indicators if future profit and loss accounts become available.
• Watch for reduction in current liabilities or restructuring of debts.
• Observe any changes in shareholder funding or director loans that might support liquidity.
• Keep an eye on director or owner interventions given their significant control.