Company Number: SC761801

Analysis Date: 2025-07-20 19:17 UTC

1. Credit Opinion: DECLINE

DT Technology Solutions Ltd is a newly incorporated private limited company with its first accounting period ending 31 March 2024. The financial statements reveal significant weaknesses: net current liabilities of £25,822 and negative shareholders' funds of £18,858. The total liabilities exceed assets by a considerable margin, indicating an insolvent balance sheet position. The company’s cash balance is low (£1,982) relative to current liabilities (£29,303), raising concerns about liquidity and its ability to meet short-term obligations. Without operating profit information (not filed), it is difficult to assess revenue or cash generation capability, but the negative net assets and working capital deficit are clear red flags. The directors hold 25-50% each, but no information suggests external financial support or committed funding. Given these factors, the company is not currently in a financial position to service debt or new credit facilities without significant improvement or capital injection.

2. Financial Strength:

The company’s balance sheet shows total fixed assets of £6,974 (plant and machinery) and current assets of £3,481 (including stocks of £1,499 and cash £1,982). Current liabilities total £29,303, including trade creditors, tax and social security liabilities, and other creditors. The resultant net current liabilities of £25,822 and total net liabilities of £18,848 indicate financial distress. The company is in its infancy (incorporated in March 2023) and has not yet built positive retained earnings. Absence of audit and income statement limits visibility on profitability, but the reported figures show a weak capital structure and poor solvency.

3. Cash Flow Assessment:

The cash position of £1,982 is insufficient to cover immediate liabilities, which include bank loans and overdrafts of £824 and substantial tax and social security liabilities of £11,384. The working capital deficit implies ongoing cash flow strain. Without evidence of cash inflows or receivables turnover, liquidity risk is high. The company must either improve cash generation, secure additional funding, or restructure liabilities to maintain operations.

4. Monitoring Points:

• Monitor subsequent filings for profit and loss data to assess revenue growth and operational cash generation.
• Watch changes in current liabilities, especially tax and social security creditor balances, which may indicate payment defaults.
• Track any capital injections or shareholder loans that improve equity and liquidity.
• Review payment performance on trade creditors and bank facilities for indications of financial stress.
• Monitor director conduct and any changes in ownership structure that might affect governance and financial discipline.