DIVERSITY IN RECRUITMENT LIMITED

Executive Summary

Diversity in Recruitment Limited is a micro-entity with a limited capital base and declining net assets, raising moderate solvency and liquidity concerns. While statutory compliance is current, operational scale is minimal, and financial flexibility appears constrained. Further due diligence on cash flows and business viability is recommended to clarify risk.

DIVERSITY IN RECRUITMENT LIMITED - Analysis Report

Company Number: 13109295

Analysis Date: 2025-07-20 13:11 UTC

1. Risk Rating: MEDIUM
   The company shows a modest net asset base with a decline in net assets from £1,131 in 2023 to £279 in 2024. Current liabilities have decreased, but current assets have fallen significantly, leading to a negative net current asset figure in the latest year. This mixed picture suggests some solvency concerns, though no immediate insolvency signals are evident.

2. Key Concerns:

• Declining net assets and working capital: The net current assets fell from a positive £202 in 2023 to negative £933 in 2024, indicating potential liquidity pressure.
• Very limited capital base: Share capital remains nominal at £1.00, with shareholders funds also low, constraining financial flexibility.
• Single employee operation: With only one employee, operational capacity and scalability may be limited, raising sustainability questions if business volumes fluctuate.

3. Positive Indicators:

• Compliance: All statutory filings, including accounts and confirmation statements, are up to date with no overdue filings.
• Modest liabilities reduction: Current liabilities decreased from £7,768 in 2023 to £5,757 in 2024, showing some control over short-term obligations.
• Active status and ongoing operation since 2021, indicating some business continuity.

4. Due Diligence Notes:

• Review detailed cash flow statements and bank reconciliations to assess liquidity trends beyond the balance sheet snapshot.
• Investigate revenue streams and client contracts to evaluate operational sustainability and growth prospects.
• Confirm there are no contingent liabilities or off-balance sheet obligations that could impair solvency.
• Assess director’s plans to improve financial position given the decline in net assets and working capital.