DREAM WORKS CUSTOMZ LTD

Executive Summary

Dream Works Customz Ltd is in a weak financial position with negative net assets and limited liquidity, supported mainly by a director loan. The company shows no operational activity or cash flow capacity to meet liabilities, posing high credit risk. Credit approval is not recommended until significant business progress and financial stabilization occur.

DREAM WORKS CUSTOMZ LTD - Analysis Report

Company Number: 14070813

Analysis Date: 2025-07-20 11:26 UTC

1. Credit Opinion: DECLINE
   Dream Works Customz Ltd exhibits significant financial distress, with net liabilities of £6,775 at the last accounting date. The company shows a negative working capital position and relies entirely on a director's loan of £6,396, indicating dependence on shareholder funding rather than operational cash generation. There is no evidence of revenue, profitability, or employee activity, suggesting the business is not yet trading or generating income to meet obligations. Given the absence of cash flow, limited assets, and negative equity, the risk of default is high. Lending or extending credit at this stage is not advisable without substantial business improvement and evidence of sustainable cash inflows.

2. Financial Strength:
   The balance sheet reveals a very weak financial position. Current assets are minimal (£101 cash), while current liabilities exceed this (£480 accrued expenses), resulting in negative net current assets (-£379). Total liabilities include a long-term director loan of £6,396, causing net liabilities of £6,775. Shareholders’ funds are negative, reflecting losses or capital withdrawals not offset by earnings. The absence of fixed assets or other tangible resources undermines collateral value. Overall, the company’s financial strength is poor and not supportive of additional credit exposure.

3. Cash Flow Assessment:
   Cash on hand is negligible at £101, insufficient to cover even short-term liabilities. No employees are reported, indicating no payroll or operational expenses recognized in accounts, which raises concerns about business activity levels. The director’s loan indicates external funding support rather than self-sustaining cash generation. The lack of income statement details and negative retained earnings imply no operational cash inflow. Liquidity is severely constrained, and working capital management appears ineffective. The company currently lacks the cash flow capacity to service debt or meet commercial commitments.

4. Monitoring Points:

• Track operational revenue and profitability development in future accounts to assess business viability.
• Monitor cash balances and working capital trends to evaluate liquidity improvements.
• Review any changes in director loans or additional capital injections that may affect solvency.
• Observe management actions toward reducing liabilities and improving asset base.
• Confirm timely filing of accounts and confirmation statements to ensure compliance and transparency.