DSLX DESIGN LIMITED

Executive Summary

DSLX Design Limited exhibits solid financial health with improving net assets and strong liquidity, underpinned by good working capital management. The company is compliant with regulatory requirements and shows promising growth potential in its niche sector. Based on current data, credit approval is recommended with ongoing monitoring of liabilities and operational performance.

DSLX DESIGN LIMITED - Analysis Report

Company Number: 14280894

Analysis Date: 2025-07-29 18:58 UTC

1. Credit Opinion: APPROVE DSLX Design Limited, a recently incorporated private limited company engaged in support activities to performing arts (SIC 90020), demonstrates a healthy financial position with positive net current assets and growing shareholders' funds. The company’s ability to increase cash reserves significantly from £14,082 to £34,448 within one year and maintain a low level of current liabilities (£14,442) reflects sound liquidity management and capacity to meet short-term obligations. There are no indications of financial distress or director misconduct, and the company is compliant with filing deadlines. While still young, the firm shows promising growth and prudent financial stewardship, supporting credit approval for moderate lending facilities.

2. Financial Strength: The company’s balance sheet shows an increase in net assets from £11,038 in 2023 to £22,528 in 2024, primarily driven by accumulated retained earnings. Fixed assets have grown modestly to £2,522, indicating investment in tangible assets aligned with operational needs. Share capital remains minimal (£2), typical for small private companies. The company maintains a strong equity base with shareholders’ funds fully covering current liabilities, implying no reliance on short-term borrowing. The increase in current liabilities, primarily taxation and social security, appears proportionate and manageable given the cash position.

3. Cash Flow Assessment: Cash at bank has increased significantly, indicating strong operating cash inflows or capital injections. Net current assets of £20,006 provide a solid working capital cushion, enhancing operational flexibility. Director advances remain low and well controlled. The company’s liquidity ratios show it can comfortably cover current liabilities with cash and liquid assets. The absence of overdue filings or audit requirements reduces compliance risk and supports ongoing cash flow stability.

4. Monitoring Points:

• Continue monitoring growth in current liabilities, especially tax-related payables, to ensure timely settlement.
• Track turnover and profitability trends as these were not disclosed in detail; profitability will underpin future cash flows.
• Observe fixed asset investments to confirm they contribute to revenue growth without impairing liquidity.
• Review director advances and related party transactions periodically for any signs of financial stress or governance issues.
• Monitor compliance with future filing deadlines and any changes in company status or industry conditions that may impact risk.