DN97 LIMITED

Executive Summary

DN97 LIMITED is a micro-sized, privately held business with stable but minimal net assets and working capital. The company’s financial health benefits from positive liquidity but is reliant on director loans, which poses potential credit risk. Conditional approval is recommended with ongoing monitoring of related party funding and cash flow sustainability.

DN97 LIMITED - Analysis Report

Company Number: 13013072

Analysis Date: 2025-07-29 20:04 UTC

1. Credit Opinion: CONDITIONAL APPROVAL
   DN97 LIMITED shows a modest but stable financial position for a small enterprise. The company maintains positive net current assets and net equity, with no overdue filings and management appears compliant with regulatory requirements. However, the reliance on director loans (unsecured, interest-free, repayable on demand) to fund operations introduces a potential liquidity risk and weakens independent financial resilience. Credit approval should be conditional on continued monitoring of cash flow and clarification on plans to reduce related party liabilities and diversify funding sources.

2. Financial Strength
   The company’s balance sheet shows net assets of £7,930 as at 30 November 2023, down slightly from £9,263 the previous year. Current assets (£23,133) exceed current liabilities (£15,203), resulting in positive working capital (£7,930). The capital base is minimal (£100 share capital), with the majority of equity represented by retained earnings (£7,830). The financial structure is typical for a micro-sized entity, but the small equity base and modest size limit the company’s ability to absorb financial shocks.

3. Cash Flow Assessment
   Cash on hand increased slightly to £14,133, providing a reasonable immediate liquidity buffer for day-to-day operations. However, the company’s creditors include a significant amount (£12,882) due to the director, an interest-free, unsecured loan repayable on demand, indicating potential short-term liquidity dependency on related party funding. Debtor balances remain stable around £9,000, suggesting consistent receivables but limited scale. Overall, liquidity is adequate but dependent on director support; external cash flow sources or profitability improvements would strengthen the position.

4. Monitoring Points

• Director loan balance and repayment terms: track any changes or potential calls on these funds.
• Cash flow trends: monitor cash generation from operations to reduce reliance on related party lending.
• Profitability and retained earnings trajectory: assess if the company can rebuild equity and reduce losses if any arise.
• Creditors aging and payment terms: ensure trade creditors and tax liabilities remain manageable.
• Compliance with filing deadlines and governance standards.