DORSET EVENT HIRE LTD

Executive Summary

Dorset Event Hire Ltd’s financials indicate a weakening position with negative net assets and significant liquidity constraints, undermining its ability to service credit. The company’s current financial trajectory and micro category scale suggest high credit risk, recommending a decline of credit facilities until substantial improvement is observed. Close monitoring of liquidity and equity restoration is essential for any future consideration.

DORSET EVENT HIRE LTD - Analysis Report

Company Number: 13527645

Analysis Date: 2025-07-29 17:00 UTC

1. Credit Opinion: DECLINE
   Dorset Event Hire Ltd shows a deteriorating financial position with net liabilities of £11,730 as of July 2024, down from net assets of £6,864 the previous year. The company is in the micro category but has negative working capital and net current liabilities of £44,770, indicating liquidity stress. There is no employee base, suggesting limited operational scale and potential revenue generation challenges. The company’s inability to maintain positive net assets and current assets signals weak financial resilience and questionable ability to service new or existing debt.

2. Financial Strength:
   The balance sheet reveals fixed assets of £34,480, but current assets are negative at -£9,046, implying possible overstated receivables or prepaid expenses offset by liabilities. Current liabilities have increased to £35,724, exacerbating the cash flow pressure. The net asset position shifted from positive to negative within a year, reflecting accumulated losses or write-downs. The company’s shareholders’ funds are wholly eroded, indicating no equity buffer to absorb shocks.

3. Cash Flow Assessment:
   Negative net current assets are a critical red flag, suggesting ongoing liquidity issues. The company’s current liabilities exceed current assets substantially, which could lead to difficulties in meeting short-term obligations. The absence of employees might reduce overheads but also raises concerns about the company’s operational capacity to generate sufficient cash flow. No audit or detailed cash flow statement is provided, limiting a deeper cash flow analysis, but the available data points to constrained liquidity.

4. Monitoring Points:

• Track quarterly accounts or management accounts for improvement in net current assets and cash position.
• Monitor any capital injections or shareholder loans that could strengthen the balance sheet.
• Review trade creditor payment patterns for signs of distress or delays.
• Assess operational developments such as new contracts or revenue streams that could enhance cash generation.
• Follow director’s actions or restructuring plans to address financial weakness.