DSG BUILDING SERVICES LTD

Executive Summary

DSG Building Services Ltd exhibits a high-risk profile primarily due to its liquidity shortfall and rapid erosion of equity, compounded by the complete disposal of fixed assets. While the company remains compliant with filing requirements and active in status, the financial indicators suggest operational and solvency challenges that warrant further detailed investigation before any investment decision. Close scrutiny of cash flows, director loans, and business prospects is recommended to fully understand the company's viability.

DSG BUILDING SERVICES LTD - Analysis Report

Company Number: 13208353

Analysis Date: 2025-07-20 13:19 UTC

1. Risk Rating: HIGH
   The company shows significant signs of financial distress, notably a complete depletion of current assets and cash as at 31 March 2024, resulting in net current liabilities of £4,258. This liquidity shortfall raises concerns about the company's ability to meet short-term obligations. Additionally, the rapid reduction in shareholders' funds from £21,365 (2023) to £7,156 (2024) and then effectively to £100 (share capital) with retained earnings negative at the latest period, signals deteriorating financial health.

2. Key Concerns:

• Liquidity Deficit: Current assets and cash balances have fallen to zero, with current liabilities remaining substantial (~£10k), indicating potential cash flow problems.
• Rapid Asset Disposal: The company disposed of all tangible fixed assets by the end of March 2024, which may reflect distress or business contraction.
• Declining Shareholders' Funds: Equity has shrunk considerably over a short period, suggesting accumulated losses and weakening solvency.

3. Positive Indicators:

• Compliance: The company is up to date with both accounts and confirmation statement filings, with no overdue returns or penalties noted.
• Active Status: The company remains active and is not in liquidation or administration, indicating ongoing operations.
• Small Company Exemption: The use of the total exemption full accounts and small company regime reduces filing complexity, consistent with its size.

4. Due Diligence Notes:

• Investigate the reasons behind the disposal of all fixed assets and whether this was a strategic repositioning or forced sale due to financial distress.
• Review management accounts and cash flow forecasts post-March 2024 to assess current liquidity and operational viability.
• Clarify the nature and terms of the director’s current account credit of £7,213 within current liabilities, as this may indicate director loans or related-party funding that could affect solvency assessment.
• Examine any contingent liabilities or off-balance sheet obligations not captured in the filings.
• Confirm the company's order book, client base, and revenue trends to evaluate operational sustainability beyond the snapshot financials.