DODO SOLUTIONS LIMITED

Executive Summary

Dodo Solutions Limited is currently financially distressed with significant working capital deficits and negative net assets, undermining its capacity to service debt. The company is reliant on director advances and external creditors to operate, with liquidity pressures escalating. Credit extension is not recommended without substantial evidence of turnaround or capital injection.

DODO SOLUTIONS LIMITED - Analysis Report

Company Number: 12579969

Analysis Date: 2025-07-29 20:18 UTC

1. Credit Opinion: DECLINE
   Dodo Solutions Limited presents significant financial distress with negative net assets for multiple years, deteriorating from a net asset position of £547 in 2020 to a deficit of £1,674 in 2024. The company shows persistent net current liabilities, increasing from £495 in 2021 to £1,903 in 2024, indicating a working capital deficit and liquidity pressure. The director's advances to the company and the increasing creditor balances suggest reliance on director funding and external creditors to maintain operations. Without evidence of profitability or positive cash flow generation, the company’s ability to service new debt or meet existing obligations is highly questionable.

2. Financial Strength:
   The balance sheet reveals a weakening financial position. Tangible assets have declined (from £467 in 2023 to £305 in 2024), while current liabilities have grown substantially to nearly £3,000, more than doubling since 2020. Net current liabilities and net asset deficits highlight erosion of shareholder funds and indicate insolvency on a balance sheet basis. The company’s negative retained earnings and absence of debt repayment capacity reflect poor financial resilience. Share capital is minimal at £1, with all equity eroded by losses.

3. Cash Flow Assessment:
   Cash holdings have declined (from £1,274 in 2023 to £1,093 in 2024) while creditors increased, implying cash outflows exceed inflows. Negative net current assets confirm working capital deficits, raising concerns over liquidity to meet short-term obligations. The company’s reliance on director advances, which have fluctuated and increased to a negative balance of £2,561, indicates ongoing cash flow support requirements. Absence of debt repayment or cash generation trends casts doubt on the company’s ability to service additional credit facilities.

4. Monitoring Points:

• Monitor liquidity ratios and working capital closely; ongoing net current liability could trigger insolvency risk.
• Track director’s financial support and creditor balances for signs of increased funding reliance or pressure.
• Observe any improvements in cash flow generation or profitability in future filings.
• Watch for any changes in business model or external financing that could alleviate financial strain.
• Review compliance with filing deadlines to avoid regulatory penalties and assess management discipline.