DIXTRON LTD

Executive Summary

DIXTRON LTD is an early-stage micro-entity with limited financial history and a fragile balance sheet characterized by minimal net assets and a working capital deficit. While currently solvent and compliant with filings, the company’s small asset base and liquidity position warrant cautious, conditional credit approval. Ongoing monitoring of cash flow and business performance is essential to mitigate credit risk.

DIXTRON LTD - Analysis Report

Company Number: 15736166

Analysis Date: 2025-07-29 18:36 UTC

1. Credit Opinion: CONDITIONAL APPROVAL
   DIXTRON LTD is a newly incorporated micro-entity with minimal trading history, incorporated less than one year ago. The current financials show very limited asset base (£3,082 fixed assets) and net assets of only £403. Negative net current assets (-£2,679) indicate short-term liquidity constraints. The company is active, with no overdue filings and a sole director and 100% shareholder demonstrating clear control. Given its nascent stage and small scale, credit exposure should be limited and closely monitored. Approval is conditional on continued timely filings, evidence of revenue generation, and improvement in working capital.

2. Financial Strength:
   The balance sheet reflects a micro-entity profile with very modest fixed assets and minimal current assets (£375). Current liabilities exceed current assets by £2,679, indicating a working capital deficit that may constrain operational flexibility. Net assets stand at a low £403, reflecting limited equity buffer. The company’s capitalization is minimal, consistent with a start-up phase. Absence of debt or long-term liabilities is positive, but the financial base is fragile and dependent on future cash inflows.

3. Cash Flow Assessment:
   Current assets of £375 primarily comprise cash or receivables, which are insufficient to cover current liabilities of £3,054. This negative net current asset position suggests potential liquidity pressure, requiring external funding or prompt cash inflows to meet short-term obligations. With only one employee and micro-scale operations, cash burn may be low, but the company must demonstrate improved cash management and working capital generation to sustain operations.

4. Monitoring Points:

• Quarterly review of cash flow and liquidity metrics to ensure short-term obligations can be met.
• Timely filing of statutory accounts and confirmation statements to avoid regulatory penalties.
• Tracking revenue growth and profitability trends to assess business viability and debt servicing capacity.
• Monitor director conduct and any changes in ownership or governance structure.
• Watch for increases in current liabilities or adverse movements in net assets that could indicate financial stress.