DIVE ARRAN LTD

Executive Summary

Dive Arran Ltd is in a precarious financial position with persistent negative net assets and poor liquidity. The company has announced it will cease trading in July 2025, which further undermines its creditworthiness. Given the current financial trends and imminent closure, credit facilities cannot be recommended.

DIVE ARRAN LTD - Analysis Report

Company Number: SC677009

Analysis Date: 2025-07-29 13:57 UTC

1. Credit Opinion: DECLINE
   Dive Arran Ltd exhibits a weak financial position with negative net assets and shareholders’ funds for five consecutive years. The company’s liabilities exceed its assets, indicating insolvency on a balance sheet basis. Additionally, the business has announced cessation of trading by July 2025, which signals imminent wind-down rather than ongoing operations. These factors collectively pose high credit risk and limit ability to service new or existing debt obligations.

2. Financial Strength:

• Net assets remain negative at £-1,668 as of 31/10/2024, though an improvement from £-3,227 the prior year.
• Fixed assets are minimal at £9,297, showing limited tangible collateral value.
• Current assets are very low (£783) relative to current liabilities (£11,748), indicating poor liquidity and working capital constraints.
• Creditors due after more than one year total £11,748, reflecting long-term obligations exceeding asset base.
• Negative equity suggests shareholders have not injected sufficient capital to cover accumulated losses.

3. Cash Flow Assessment:

• Current liabilities significantly exceed current assets, resulting in negative net working capital, which raises concern over ability to meet short-term obligations as they fall due.
• Operating cash flow data is unavailable, but low current assets and ongoing losses imply cash generation challenges.
• No employees are reported, indicating minimal ongoing operational expenses but also potentially limited revenue-generating activity.
• The planned cessation of trading in mid-2025 further constrains future cash flow prospects.

4. Monitoring Points:

• Watch for updated accounts post cessation of trading to assess final liquidation or closure impact.
• Monitor any changes in creditor arrangements or debt restructuring proposals.
• Track director activities and communications for any indications of insolvency proceedings.
• Verify if any shareholder capital injections or external financing occurs to improve solvency.