DREAMSCAPE SURROUNDINGS LTD

Executive Summary

Dreamscape Surroundings Ltd, incorporated in 2023, presents a high-risk profile due to negative net assets and a liquidity deficit as of April 2024, with no employees or trading activity reported. While compliance with filing deadlines is a positive sign, substantial concerns remain about the company’s financial stability and operational viability at this early stage.

DREAMSCAPE SURROUNDINGS LTD - Analysis Report

Company Number: 14809353

Analysis Date: 2025-07-29 20:42 UTC

1. Risk Rating: HIGH
   Given the company’s very recent incorporation (April 2023) and the financial snapshot as of April 2024 showing net current liabilities and negative net assets, there is a high risk concerning solvency and liquidity. The current assets (£1,351) are insufficient to cover current liabilities (£3,108), and the balance sheet indicates a negative net asset position (-£1,757), signaling potential financial distress.

2. Key Concerns:

• Negative Net Assets: The balance sheet shows a net asset deficiency of £1,757, which raises immediate questions about the company’s ability to meet its liabilities and continue as a going concern.
• Liquidity Shortfall: Current liabilities (£3,108) exceed current assets (£1,351), indicating potential cash flow difficulties in the short term.
• No Operating Revenue or Employees: The accounts note zero employees and provide no indication of trading income or operational activity. This lack of operational data may imply the business has yet to become fully functional or generate cash flows, increasing risk.

3. Positive Indicators:

• Compliance with Filing Requirements: The company is up to date with both accounts and confirmation statement filings, indicating good regulatory compliance so far.
• Clear Ownership and Control: Ownership and control are clearly identified with two directors/shareholders holding 25-50% each, which may support straightforward governance and decision-making.
• Micro-Entity Status: As a micro-entity, the company benefits from simplified reporting requirements, which may reduce administrative burdens in early stages.

4. Due Diligence Notes:

• Examine Cash Flow and Funding Sources: Investigate how the company intends to address the working capital shortfall and fund ongoing operations. Confirm any external financing or shareholder loans not reflected in the balance sheet.
• Assess Business Plan and Operational Status: Clarify the company’s operational progress given the absence of employees and trading data. Determine timelines for revenue generation and sustainability.
• Review Directors’ Backgrounds and Related Party Transactions: Verify directors’ experience in the landscaping sector and any transactions between the company and its controllers to assess related-party risks.
• Investigate Creditors and Obligations: Understand the nature of the liabilities (£3,108) and any contingent obligations that may affect solvency.