Company Number: 12542514

Analysis Date: 2025-07-19 12:23 UTC

1. Credit Opinion: CONDITIONAL APPROVAL
   Diverse Partnerships Limited is a micro private limited company engaged in building project development. It demonstrates a modest but stable balance sheet with positive net current assets and shareholders’ funds that have gradually increased from £111 to £815 over four years. The company exhibits consistent working capital, though on a very small scale, and no significant liabilities beyond current creditors. The director’s advances indicate some reliance on related party funding, which could present a risk if external financing is sought. Given the small scale and limited financial resources, credit approval should be conditional upon maintaining current liquidity levels and controlling director loans.

2. Financial Strength:
   The company’s balance sheet is small but stable. Current assets as of April 2024 stand at £4,767 against current liabilities of £3,952, resulting in positive net current assets of £815. Shareholders’ funds mirror this figure, reflecting limited external equity or retained earnings beyond the initial capital of £10. The business is maintaining a positive equity position steadily over time but at a very low absolute level. The small scale and minimal asset base limit financial flexibility, and the company’s financial strength is weak relative to larger peers.

3. Cash Flow Assessment:
   Liquidity is currently positive but marginal, with net current assets of £815. The reduction in current assets from £13,734 in 2023 to £4,767 in 2024 suggests a drawdown of cash or receivables which may affect operational cash flow. The company’s working capital is minimal, and reliance on director advances (£1,056 owed to the director as of 2024 year end) indicates tight cash flow management. There is no indication of long-term debt, which reduces financial risk, but the business is highly dependent on short-term liquidity and director support.

4. Monitoring Points:

• Maintain or improve net current asset position and monitor liquidity closely.
• Monitor director loans and advances to ensure these do not escalate and impair financial stability.
• Watch for continued timely filing of accounts and returns to avoid compliance risk.
• Track any changes in scale or scope of operations that might impact working capital needs.
• Assess any changes in the property development market which could impact the company’s revenue and cash flow.