DOIT LOGISTICS LTD

Executive Summary

DOIT LOGISTICS LTD shows a fragile financial position with negative net assets and persistent liquidity shortfalls over recent years. The company’s ability to meet short-term obligations relies heavily on ongoing director support rather than operational cash flow. Credit facilities are not recommended due to the high risk of non-repayment and weak financial fundamentals.

DOIT LOGISTICS LTD - Analysis Report

Company Number: 12573014

Analysis Date: 2025-07-19 12:23 UTC

1. Credit Opinion: DECLINE
   DOIT LOGISTICS LTD exhibits a persistently weak financial position with negative net current assets and net liabilities over the last three years. The company’s balance sheet shows total liabilities exceeding assets, indicating an inability to cover short-term obligations from current assets. The director’s support is noted as critical for going concern, implying the company is reliant on external funding or financial backing rather than generating sufficient internal cash flows. Given these financial weaknesses and lack of significant asset base or capital buffer, extending credit facilities would pose a high risk of default.

2. Financial Strength:
   The company is classified as a micro-entity with minimal fixed assets (£664) and very low current assets (£273) against current liabilities of £2,576 as of April 2024. This results in a net current liability position of £2,303, deteriorating from prior years but consistently negative since 2021. Net assets are negative at £1,639, reflecting accumulated losses or capital erosion. Shareholders’ funds are insufficient and declining. The financial trajectory shows weakening liquidity and no meaningful improvement in asset coverage or equity capital. The company’s reliance on director support further indicates fragile financial strength.

3. Cash Flow Assessment:
   Current assets are insufficient to meet current liabilities, indicating poor liquidity and negative working capital. The company holds minimal cash or receivables to cover short-term debts, which signals cash flow constraints. The negative net current assets suggest an inability to meet immediate financial obligations without additional funding. The company’s business model (warehousing and logistics) typically requires working capital, but reported figures do not demonstrate sufficient liquidity or operational cash flow to sustain or grow operations independently.

4. Monitoring Points:

• Trends in net current assets and net liabilities: Watch for any improvements in liquidity or reduction in short-term liabilities.
• Director support commitments: Monitor any changes or withdrawal of financial backing from the director.
• Cash flow statements (if available): Evaluate operational cash generation going forward.
• Timely filing of accounts and confirmation statements to detect potential distress signals.
• Any material changes in business scale or asset acquisition that could strengthen the balance sheet.