DOOR ART LTD

Executive Summary

DOOR ART LTD currently exhibits weak financial health with negative equity and significant liabilities exceeding assets. Its liquidity position is strained, showing insufficient working capital to meet short-term debts. Based on available financial data, the company is not recommended for credit extension without substantial improvements or additional security.

DOOR ART LTD - Analysis Report

Company Number: 13155369

Analysis Date: 2025-07-29 14:14 UTC

1. Credit Opinion: DECLINE
   DOOR ART LTD shows a weak financial position with negative net assets and significant long-term liabilities surpassing total assets. The company’s net current liabilities of £34,393 indicate liquidity stress and insufficient working capital to cover short-term obligations. Given these factors and the absence of profitability data suggesting operational cash generation, the company poses a high credit risk at this stage.

2. Financial Strength:
   The balance sheet reveals fixed assets valued at £120,852 but this is offset by current liabilities of £36,531 and non-current liabilities of £88,901, culminating in negative shareholders’ funds of £2,442. The decline from positive equity in 2022 to negative in 2023 signals financial deterioration and potential solvency concerns. The company’s micro-entity size and no employee base limit its financial resilience and capacity to absorb shocks.

3. Cash Flow Assessment:
   Current assets stand at only £2,138, insufficient to cover the short-term liabilities of £36,531, reflecting poor liquidity and working capital deficiency. The negative net current assets position suggests reliance on external funding or asset disposals to meet immediate obligations. There is no evidence of cash flow from operations or other sources to mitigate liquidity constraints.

4. Monitoring Points:

• Track changes in net assets and equity to monitor solvency trends.
• Watch current asset and liability movements to assess liquidity improvements or further deterioration.
• Review any forthcoming profit and loss information to evaluate operational cash generation.
• Monitor director and shareholder activities for potential capital injections or restructuring efforts.
• Keep abreast of any overdue filings or regulatory issues that may exacerbate credit risk.