D&L HOME IMPROVEMENTS LTD

Executive Summary

D&L Home Improvements Ltd, a recently incorporated micro-entity, presents a concerning financial position with negative net current assets and net liabilities, indicating solvency risk. While regulatory compliance is maintained and ownership is centralized, the minimal operational scale and limited financial transparency warrant careful further investigation into liquidity and business viability.

D&L HOME IMPROVEMENTS LTD - Analysis Report

Company Number: 14383937

Analysis Date: 2025-07-20 14:37 UTC

1. Risk Rating: HIGH
   The company shows negative net current assets and net liabilities of £5,832 as of the last financial year end, indicating insolvency concerns. The micro-entity size and recent incorporation provide limited financial history, but current financials suggest inability to meet short-term liabilities.

2. Key Concerns:

• Negative net current assets and net liabilities indicate potential solvency risk and inability to cover immediate debts.
• Very limited operational scale with only one employee and minimal assets, raising questions about business sustainability and cash flow sufficiency.
• Lack of auditing and reliance on micro-entity exemptions limits financial transparency and reduces assurance on financial health.

3. Positive Indicators:

• Company is compliant with filing deadlines for accounts and confirmation statements, indicating regulatory adherence.
• Ownership and control are consolidated under a single director and significant controller, which may facilitate swift decision-making.
• The business is active and not under any insolvency procedures such as liquidation or administration.

4. Due Diligence Notes:

• Investigate the company’s cash flow projections and sources of funding to assess liquidity beyond balance sheet figures.
• Review any related party transactions or director loans that might impact solvency or financial support.
• Seek additional information on contracts or order book to evaluate operational sustainability and future revenue prospects.
• Confirm whether there are any contingent liabilities or off-balance sheet commitments affecting financial position.