Company Number: 12634650

Analysis Date: 2025-07-20 12:03 UTC

1. Credit Opinion: DECLINE
   DL Ventures Limited displays weak financial health unsuitable for new or extended credit. The company reported negative net assets of £6,385 as at 31 May 2024, reflecting erosion of equity and net current liabilities of £6,386. This indicates an inability to cover short-term debts with current assets, raising high risk for creditors. The absence of profit and loss data limits insight into operational performance but the balance sheet deterioration over one year from positive equity to negative net assets is a significant red flag. There is no evidence of improving profitability or cash generation.

2. Financial Strength:
   The company is classified as a micro entity with minimal share capital (£1). The balance sheet as of May 2024 shows total current assets of £12,232 against current liabilities of £19,218, resulting in negative working capital. Net liabilities of £6,385 imply the company has more debt than assets, undermining solvency. The sudden change from net assets of £1 in 2023 to negative equity in 2024 suggests financial distress or losses. The company employs only one person, indicating a small operational scale and limited asset base.

3. Cash Flow Assessment:
   Current assets primarily represent liquid or near-liquid assets but are insufficient to cover current liabilities. Negative net current assets indicate liquidity strain and potential difficulty in meeting short-term obligations. No cash flow or profit and loss data is provided, but the negative equity position combined with working capital deficiency implies poor cash flow management or operating losses. The company’s ability to generate positive cash flow to service debt is questionable.

4. Monitoring Points:

• Monitor upcoming financial filings for improvement in net assets and working capital.
• Review profit and loss data when available to assess operational performance.
• Track director changes and shareholding structure for impact on governance and control.
• Watch for any indications of overdue payments, defaults, or creditor actions.
• Keep an eye on company filings to ensure no further deterioration in financial position or move towards insolvency.