DISTINCT ADVANTAGE LTD

Executive Summary

Distinct Advantage Ltd is a dormant private limited company with no trading activity and a positive net asset position primarily comprised of stock. Compliance with statutory filings is up to date, and no immediate solvency or regulatory concerns are evident. However, absence of cash and operational activity warrants further inquiry if the company plans to commence trading.

DISTINCT ADVANTAGE LTD - Analysis Report

Company Number: 13016495

Analysis Date: 2025-07-20 14:47 UTC

1. Risk Rating: LOW
   The company is currently dormant, has no liabilities, and maintains positive net assets with no overdue filings. There is minimal operational activity, which reduces immediate financial or regulatory risk.

2. Key Concerns:

• Dormant status means no trading activity; lack of revenue generation could pose future solvency risk if the company intends to operate.
• Absence of cash despite current assets of £20,000 (classified as stocks) may indicate limited liquidity for immediate obligations.
• Single director structure with no additional governance roles could present operational risks if the company restarts trading.

3. Positive Indicators:

• No overdue accounts or confirmation statements, indicating good compliance with filing requirements.
• Net assets and shareholders’ funds stand at £20,000, suggesting a positive equity position.
• No current liabilities reported, minimizing solvency pressure at this stage.

4. Due Diligence Notes:

• Clarify the nature and realizability of the £20,000 in stocks classified as current assets, especially given zero cash on hand.
• Assess the director’s plans for the company regarding future trading and capital requirements.
• Review any off-balance sheet commitments or contingent liabilities not disclosed in the dormant accounts.
• Confirm if there are any PSCs or beneficial owners since none were reported, to understand control structure.
• Evaluate the market and business model feasibility given the SIC code of agents involved in textiles and related goods.