DOLPHIN COM LIMITED

Credit Opinion: CONDITIONAL

Dolphin Com Limited is a solvent, long-established private company with positive net assets and no material long-term debt. However, the accounts are filed under the small companies regime and are filleted, so no profit and loss account is available to assess profitability, turnover, or debt-service capacity. Short-term creditors have risen materially year on year, trade debtors represent a large proportion of current assets, and net assets have declined from their 2021 peak. A facility should only be considered on a secured basis—supported by a debenture and a personal guarantee from the controlling director—and conditional on receipt of recent management accounts and a debtor ageing review.

Financial Strength: Balance Sheet Health

• Net assets were £208,114 at 31 July 2025, broadly stable versus £210,733 in 2024, but down from £328,812 in 2021. The equity base is thin, with only £100 of called-up share capital; the balance is retained earnings.
• Fixed assets are modest at £51,164 (tangible assets), indicating a low asset base to support any secured lending.
• Current liabilities increased to £468,480 from £389,609, a rise of approximately 20%. There is no significant long-term debt (creditors falling due after more than one year are £2,758), so the balance sheet is not heavily geared, but short-term obligations are substantial relative to equity.
• Net current assets are £168,864, providing a thin working-capital buffer. The current ratio is approximately 1.36, down from 1.45 in the prior year.

Overall, the balance sheet remains solvent but shows signs of gradual erosion in reserves and a weakening liquidity position.

Cash Flow Assessment: Liquidity and Working Capital

• Cash at bank was £110,678 at year-end 2025, an improvement from £75,006 in 2024, but well below historic levels (£264,862 in 2021 and £395,311 in 2018).
• Debtors grew to £526,666 and now represent roughly 83% of current assets. Without a profit and loss account or debtor ageing, it is not possible to assess collection risk, debtor concentration, or whether this balance reflects unbilled work or slow-paying customers.
• Because the accounts are filleted, there is no cash flow statement and no disclosed operating profit or EBITDA. Debt-service capacity cannot be verified from the filed information.
• The company’s filings (accounts and confirmation statement) are currently up to date, which supports basic administrative reliability.

Liquidity is adequate in the short term but dependent on debtor collection and continued creditor tolerance, given the size of short-term payables relative to cash and net current assets.

Monitoring Points

1. Profitability and turnover: Obtain the profit and loss account and recent management accounts to assess revenue trends, margins, and ability to service debt.
2. Debtor quality: Review debtor ageing and any concentration risk; a large debtor balance is the principal working-capital exposure.
3. Creditor position: Monitor trade creditor growth and payment behaviour; further increases in short-term creditors without corresponding cash generation would be adverse.
4. Cash trend: Track month-end cash balances and operating cash flow against any proposed facility repayments.
5. Net assets: Watch for continued erosion of retained earnings, which would reduce the equity cushion.
6. Security and guarantees: If a facility is granted, ensure a debenture and personal guarantee from the controlling director are in place, and review annually.
7. Filing compliance: Continue to monitor that accounts and confirmation statements are filed on time.