DOMOT LIMITED

Executive Summary

DOMOT LIMITED is a micro private company with a weak and declining financial position, showing negative net assets and limited liquidity. Its ability to service debt is doubtful given current liabilities exceed assets and no fixed asset base exists. Credit extension is not recommended without significant financial improvement or external guarantees.

DOMOT LIMITED - Analysis Report

Company Number: 13658236

Analysis Date: 2025-07-20 19:13 UTC

1. Credit Opinion: DECLINE
   DOMOT LIMITED’s financial data indicates a weak and deteriorating financial position. The company’s net assets and shareholders’ funds are negative (liabilities exceed assets) as of the latest accounts, reflecting insolvency on a balance sheet basis. Current liabilities remain significant relative to minimal current assets, and there is no fixed asset base. This suggests limited capacity to meet short-term obligations or service any debt without additional capital injection. The company is very small (micro-entity) with one employee and appears to be in early stages of operation but is financially vulnerable. Without evidence of strong cash inflows or external support, extending credit would be high risk.

2. Financial Strength:
   The balance sheet shows a decline from £4,463 net assets in 2022 to a negative £4,967 net assets in 2023, primarily due to increased liabilities and no fixed assets reported in 2023. Current liabilities of £2,592 outweigh current assets (not separately reported in 2023, but implied as zero or negligible). The introduction of creditors due after more than one year (£2,375) adds to long-term liabilities, further weakening the financial structure. Shareholders’ funds are negative, indicating accumulated losses or withdrawals exceeding capital. This weak equity base and negative working capital position highlight financial fragility.

3. Cash Flow Assessment:
   There is limited information on cash flow, but current liabilities exceed current assets and net current assets have worsened. The company has only one employee, so operating expenses may be low, but liabilities suggest unpaid or outstanding obligations. Absence of fixed assets and low asset base limit collateral value. The negative working capital indicates potential liquidity issues. Without positive cash flow or external financing, the company’s ability to meet short-term commitments is doubtful.

4. Monitoring Points:

• Monthly monitoring of cash balances and accounts payable to detect liquidity stress.
• Review of any new capital injections or shareholder advances to sustain operations.
• Watch for changes in creditor terms or defaults.
• Monitor filing of future accounts and confirmation statements for compliance and operational status.
• Track any change in ownership or director appointments that could affect governance or financial support.