Company Number: 14174107

Analysis Date: 2025-07-29 12:20 UTC

1. Credit Opinion: CONDITIONAL APPROVAL
   DNA Number One Limited demonstrates a solid asset base and positive net asset position, indicating underlying financial strength. However, the company exhibits a significant long-term liability load (£3.99 million) relative to its current asset base (£417k) and relatively small equity (£1.76 million). The company’s net current assets have improved from 2022 but still require careful monitoring. As a micro-entity with a single employee and minimal turnover data, the absence of a profit and loss account limits insight into operational cash flows. Approval is recommended with conditions focusing on close monitoring of liquidity, debt servicing capability, and operational cash flows.

2. Financial Strength:
   The balance sheet shows fixed assets valued at approximately £5.35 million, which is stable year-over-year, suggesting no recent disposals or impairments. Net assets stand at £1.76 million, reflecting a positive equity position and shareholder funds consistent with last year. Current liabilities are modest (£162k), improving the net current asset figure to £519k, which supports short-term solvency. However, the company carries substantial long-term liabilities (£3.99 million), which could pressure cash flows if not managed well. Overall, the balance sheet is asset-heavy with moderate equity but leveraged by debt.

3. Cash Flow Assessment:
   Current assets of £417k against current liabilities of £162k indicate adequate short-term liquidity, with net working capital positive at £519k. This is an improvement from the prior year, where net current assets were higher, but the reason for the decrease from 2021 levels should be understood. The absence of profit and loss data and cash flow statements limits the ability to assess operating cash generation or debt servicing capacity fully. The single employee staffing level suggests a lean operation, but reliance on rental income or similar revenue streams must be confirmed. Liquidity appears sufficient for operational needs, but large long-term creditor balances require prudent cash flow management.

4. Monitoring Points:

• Debt servicing capacity: Monitor interest and principal repayments on the £3.99 million long-term liabilities.
• Operational cash flows: Obtain periodic management accounts or cash flow forecasts to ensure ongoing liquidity.
• Asset utilization: Confirm that fixed assets generate adequate income or value to support the debt load.
• Changes in current assets and liabilities: Watch for any material deterioration in working capital.
• Director and ownership changes: Recent director appointment and resignation may affect governance; monitor continuity and controls.