DSR CONSULTING LIMITED

Executive Summary

DSR Consulting Limited is a financially stable young private limited company with strong liquidity and growing net assets. The sole director and controlling shareholder has maintained good financial control, positioning the firm well for credit facilities. Continued monitoring of working capital and debtor management is advised to sustain this positive credit profile.

DSR CONSULTING LIMITED - Analysis Report

Company Number: SC730599

Analysis Date: 2025-07-29 15:52 UTC

1. Credit Opinion: APPROVE
   DSR Consulting Limited demonstrates a solid financial position for a young company incorporated in 2022. The firm has shown strong growth in net assets and working capital over its first two reporting years, indicating good financial stewardship by the sole director and controlling shareholder, Mr. Derek Rose. The company’s liquidity position is healthy, with cash balances significantly exceeding current liabilities, suggesting the ability to meet short-term obligations comfortably. Given the absence of any overdue filings, no indications of financial distress, and clear ownership control, the company is creditworthy for typical credit facilities.

2. Financial Strength:
   The balance sheet as of 30 April 2024 shows net assets of £40,632, nearly doubling from £21,242 in 2023. Fixed assets are modest at £2,854, consistent with a consulting business, and have increased due to recent additions. Current assets total £63,465, primarily cash (£60,446), which is a strong liquidity indicator. Current liabilities stand at £25,687, resulting in net current assets of £37,778, a comfortable working capital position. The company has no long-term liabilities, which enhances financial stability. The equity base is fully retained earnings, reflecting internal capital generation and no external debt.

3. Cash Flow Assessment:
   Cash at bank has improved substantially from £17,052 in 2023 to £60,446 in 2024, indicating strong cash generation or capital injection. Debtors have reduced significantly from £17,181 to £3,019, improving cash conversion efficiency. Current liabilities have nearly doubled but remain well-covered by cash and net current assets. The firm maintains a robust liquidity buffer, minimizing reliance on external short-term credit and suggesting a low risk of cash flow strain in the near term.

4. Monitoring Points:

• Continued growth in turnover and profitability to sustain and improve retained earnings and net assets.
• Management of debtor days to maintain cash flow efficiency, given the sharp reduction in debtors this year.
• Monitor current liabilities growth relative to current assets to ensure working capital remains positive.
• Any changes in ownership or director appointments, although currently stable under sole control of Mr. Rose.
• Filing deadlines adherence has been good; maintain this discipline to avoid penalties or compliance risks.