DI&V LIMITED

Executive Summary

DI&V LIMITED shows elevated financial risk characterized by a sharp decline in net assets and working capital due to increased liabilities and dependence on director loans. Despite operational continuity and compliance with filings, the company’s ability to meet short-term obligations is questionable without intervention or improved cash flows. Further investigation into tax liabilities and director loan arrangements is recommended to assess financial stability.

DI&V LIMITED - Analysis Report

Company Number: 13223595

Analysis Date: 2025-07-29 14:23 UTC

1. Risk Rating: HIGH
   The company exhibits significant solvency and liquidity risk as evidenced by negative net current assets and net liabilities of approximately £4,000 at the most recent year end. The increase in current liabilities, particularly director loans and tax liabilities, without a corresponding increase in current assets, raises concerns over its ability to meet short-term obligations.

2. Key Concerns:

• Negative Working Capital and Net Assets: The company’s net current assets have deteriorated from a positive £229 in 2023 to a negative £4,026 in 2024, indicating potential cash flow and solvency issues.
• Substantial Increase in Current Liabilities: Current liabilities increased markedly from £753 in 2023 to £5,319 in 2024, driven by tax and social security liabilities (£3,276) and director loans (£2,043), suggesting possible operational or tax payment difficulties.
• Reliance on Director Loans: The presence of over £2,000 in director loans signals reliance on related party funding to support operations, which may not be sustainable long-term.

3. Positive Indicators:

• Active Status and Compliance: The company is active with no overdue filings for accounts or confirmation statements, indicating compliance with statutory requirements.
• Consistent Employee Base: Maintaining an average of 4 employees over the last two years suggests operational continuity.
• Industry Classification: The business operates in bookkeeping and business support services, sectors typically associated with steady demand and potentially recurring revenue streams.

4. Due Diligence Notes:

• Verify the nature and terms of the director loans, including repayment plans and any security arrangements.
• Investigate the cause of the substantial increase in tax and social security liabilities to assess ongoing tax compliance and risks of penalties.
• Review cash flow projections and management plans to address the negative working capital position.
• Obtain more detailed profit and loss information to understand operational performance and sustainability, as the profit and loss account was not filed.
• Understand any contingent liabilities or off-balance-sheet commitments that could exacerbate financial strain.