D&L MANAGED SERVICES LIMITED

Executive Summary

D&L Managed Services Limited shows improving financial health with strong liquidity and growing net assets, supporting a conditional credit approval. The company’s increased current liabilities require monitoring alongside cash flow and debtor management to ensure ongoing repayment capacity. Transparency limitations due to unaudited accounts and absence of profit figures suggest cautious incremental credit extension with close review.

D&L MANAGED SERVICES LIMITED - Analysis Report

Company Number: 13365658

Analysis Date: 2025-07-20 12:49 UTC

1. Credit Opinion: CONDITIONAL APPROVAL
   D&L Managed Services Limited demonstrates improving financial strength and liquidity, with net assets increasing substantially from £135k to £225k in the latest year. The company shows positive working capital and a strong cash position, indicating capability to meet short-term obligations. However, the absence of an audit and lack of profit & loss details limit full transparency. The company has no employees and operates in a niche SIC code (82990), suggesting a low-cost business model but possibly limited scalability. Continued monitoring of cash flow and liabilities is advised before extending significant credit.

2. Financial Strength:
   The company’s balance sheet shows solid growth in fixed assets (£38.8k to £114.2k) and current assets (£104.8k to £308.1k) over the last year. The increase in debtors and cash balances supports operational liquidity. Current liabilities have grown significantly to £197.6k from £8.5k, but net current assets remain positive at £110.5k. Overall net assets rose by 66%, reflecting retained earnings or capital injections. Share capital remains nominal (£2). The financial structure is sound for a small private company, with equity covering all liabilities.

3. Cash Flow Assessment:
   Cash at bank increased markedly from £9.6k to £160.6k, a very positive sign for immediate liquidity and debt servicing ability. Debtors have also increased, which may reflect business growth but requires monitoring for collection risks. The company’s net current assets and working capital position are healthy. However, the large jump in current liabilities warrants scrutiny to ensure these are manageable and not indicative of short-term funding pressure.

4. Monitoring Points:

• Continued tracking of current liabilities and their composition to avoid liquidity strain.
• Debtor aging and cash conversion cycle to ensure receivables are collectible in a timely manner.
• Profitability details, which are currently unavailable, to assess sustainable earnings.
• Impact of the company operating without employees—reliance on contractors or directors may affect operational risk.
• Any changes in director appointments or PSC holdings that could affect governance or control.