DIVOCORP LIMITED

Executive Summary

Divocorp Limited is a newly established micro entity with a modest profit and limited assets, operating in IT and advertising sectors. Given its early stage and small scale, credit approval is recommended on a conditional basis with close monitoring of financial and cash flow developments. The company currently demonstrates a sound but fragile financial foundation suitable for limited credit exposure aligned with its size and growth prospects.

DIVOCORP LIMITED - Analysis Report

Company Number: 15052914

Analysis Date: 2025-07-29 20:33 UTC

1. Credit Opinion: CONDITIONAL APPROVAL
   Divocorp Limited is a newly incorporated micro private limited company with a single director and sole shareholder. The first-year financial statements show a modest operating profit (£2,675) on low turnover (£18,209). The business operates in IT consultancy, software development, advertising, and information services, sectors with potential for growth but also competition. The small scale and limited financial history warrant caution. Credit approval could be considered on a conditional basis with limits aligned to the company's current scale and a requirement for updated financial information and cash flow forecasts before any material credit extension.

2. Financial Strength:

• Total net assets and shareholders’ funds stand at £2,675, reflecting the initial capital and retained profit.
• The balance sheet shows minimal current assets (£60 in cash or equivalents) but significant prepayments and accrued income (£2,615), which supports net current assets of £2,675.
• No long-term or fixed assets are reported, indicating limited capital investment so far.
• The company is classified as a micro entity, benefiting from simplified accounting.
• No external debt or contingent liabilities are noted, which reduces financial risk at this stage.

3. Cash Flow Assessment:

• Current assets are very low in cash terms, suggesting limited liquidity on hand.
• Prepayments and accrued income improve working capital but are not immediately liquid.
• Net current assets positive at £2,675 suggests no immediate working capital deficit.
• There are no employees, which limits ongoing fixed costs but also constrains scalability.
• The small turnover and operating profit imply the company is in an early stage and may depend on additional capital or timely receivables for cash flow stability.

4. Monitoring Points:

• Regular review of subsequent financial statements to track revenue growth and profitability trends.
• Monitor liquidity position, particularly cash balances and receivables collection efficiency.
• Watch for any changes in director or shareholder structure that could affect governance or control.
• Assess the company’s ability to scale operations and generate sustainable cash flow.
• Confirm timely filing of statutory accounts and compliance documents to avoid regulatory risks.