DIVERSE PROJECTS LIMITED

Executive Summary

Diverse Projects Limited’s financials show a marked decline with a net liability position and negative working capital, raising serious concerns over its ability to meet short-term obligations. The company currently lacks sufficient liquidity and asset backing to support credit extension. Without immediate financial restructuring or capital support, the risk of default is high.

DIVERSE PROJECTS LIMITED - Analysis Report

Company Number: 14029762

Analysis Date: 2025-07-20 17:09 UTC

1. Credit Opinion: DECLINE

Diverse Projects Limited exhibits a concerning deterioration in financial health from 2023 to 2024. The company moved from a positive net asset position (£2,954) to a substantial net liability (£15,881). This negative net worth indicates that liabilities exceed assets, signaling potential insolvency risk. The significant increase in current liabilities and the corresponding negative net current assets suggest liquidity stress. The company’s inability to maintain positive working capital undermines its capacity to meet short-term obligations. Given these factors, extending credit would pose a high risk without substantial mitigation or guarantees.

2. Financial Strength:

The balance sheet reveals no fixed assets in 2024, compared to £2,150 in 2023, and current assets plummeted from £14,152 to £899. Current liabilities escalated from £13,389 to £16,780 within the same period. The company’s shareholders’ funds have turned negative, reflecting accumulated losses or write-offs. The loans to directors that were previously reported as debtors have been written off, further weakening the balance sheet. Overall, the financial position is weak with a net liability position, low asset base, and elevated short-term liabilities.

3. Cash Flow Assessment:

Current assets of only £899 against current liabilities of £16,780 point to severe liquidity constraints. The negative net current assets of £15,881 indicate an inability to cover short-term debts from readily available resources. Furthermore, the absence of cash on hand reported in 2024 is worrying. The company’s reliance on director loans, some of which have been written off, suggests limited external financing capacity and potentially strained internal cash flows. Working capital management appears poor and cash flow insufficient to support ongoing operations without additional capital injection.

4. Monitoring Points:

• Track changes in current liabilities and working capital closely to detect further liquidity stress.
• Monitor any new director loans or capital injections that may shore up finances.
• Review the company’s ability to generate operating cash flows or secure external financing.
• Observe director conduct and any potential related party transactions given previous loan write-offs.
• Watch for overdue filings or signs of distress such as administration or liquidation proceedings.