DRAGON VALE SERVICES LTD

Executive Summary

Dragon Vale Services Ltd is a newly formed micro-entity with a clean and growing balance sheet, demonstrating adequate liquidity and financial stability for modest credit facilities. The company's positive net current assets and sole director ownership indicate good control and sound financial stewardship. Continued monitoring of liquidity and operational growth will ensure ongoing creditworthiness.

DRAGON VALE SERVICES LTD - Analysis Report

Company Number: 14670777

Analysis Date: 2025-07-29 18:03 UTC

1. Credit Opinion: APPROVE
   Dragon Vale Services Ltd demonstrates a solid financial foundation for a micro-entity incorporated recently in 2023. The company shows positive net current assets and shareholders’ funds with a growing balance sheet size year-on-year. The director has full control and the company is current with all filings, indicating sound compliance and governance. Given the business’s micro scale and stable financial position, it is creditworthy to support modest credit facilities typical for its size and industry.

2. Financial Strength:
   The latest accounts show total assets less current liabilities of £24,606, up from £20,453 the prior year, indicating growth. Fixed assets remain stable around £11,874, suggesting limited capital expenditure typical for a service business. Current assets of £33,346 comfortably cover current liabilities of £20,614, yielding net current assets of £12,732, reflecting good short-term financial health. Shareholders’ funds match total net assets, showing no external debt and a clean balance sheet.

3. Cash Flow Assessment:
   Current assets mainly comprise cash and receivables, sufficient to meet immediate liabilities; net working capital is positive at £12,732. With only one employee and a director-owner, overheads are minimal, supporting liquidity. The absence of audit and micro-entity reporting implies simplicity but no detailed cash flow statement is available. However, the steady increase in net current assets year over year indicates improving operational cash generation and liquidity.

4. Monitoring Points:

• Monitor turnover and profitability trends as the company scales from micro to small category.
• Watch current ratio and working capital closely to ensure liquidity sufficiency as operations expand.
• Confirm timely filing compliance continues to avoid penalties and demonstrate governance discipline.
• Observe any changes in director or ownership structure that might impact control or risk profile.
• Review any credit extensions and ensure receivables are collected promptly to maintain liquidity.