Company Number: 15170456

Analysis Date: 2025-07-20 18:25 UTC

1. Credit Opinion: DECLINE
   DLUX SPA LTD exhibits a weak financial position with negative net assets of £8,902 and significant long-term liabilities (£60,245) exceeding total assets. The micro-entity status and short trading history (just over one year) limit visibility on operational sustainability. Current liabilities surpass current assets, signaling potential liquidity stress. Given these factors and absence of profit and loss data, I recommend declining credit facilities at this stage due to insufficient financial resilience and high leverage.

2. Financial Strength:
   The balance sheet shows fixed assets at £38,737 and current assets of only £14,592 against current liabilities of £60,245. This results in negative net current assets if the £13,780 figure stated is a reporting anomaly (note: the provided Net Current Assets figure is inconsistent with assets and liabilities reported and likely a typographical error; based on assets and liabilities, net current assets = current assets - current liabilities = £14,592 - £60,245 = -£45,653). Total liabilities including creditors and accruals exceed total assets, causing net liabilities of £8,902. Shareholders' funds are negative, indicating the company is technically insolvent on a balance sheet basis.

3. Cash Flow Assessment:
   Limited information is provided on cash flows; however, the negative liquidity position (current liabilities > current assets) suggests working capital deficiencies and potential cash flow constraints. The company’s ability to meet short-term obligations is doubtful without additional capital injections or improved operational cash generation. The business employs only 3 people, indicating a small scale with limited operating leverage.

4. Monitoring Points:

• Monitor future filings for profit and loss data to assess operational performance and cash generation.
• Watch for any capital injections or restructuring to reduce long-term liabilities and improve equity position.
• Track liquidity ratios (current ratio, quick ratio) in subsequent accounts to gauge short-term financial health.
• Observe director’s management actions regarding debt reduction and working capital management.
• Monitor payment of creditors and any defaults or late payments reported.