Company Number: SC785941

Analysis Date: 2025-07-29 13:43 UTC

1. Credit Opinion: APPROVE with conditions
   Duack Ltd is a recently incorporated private limited company (October 2023) engaged in management consultancy (SIC 70229). Its first reported financial year ending October 2024 shows a positive net asset position (£48,180) and net current assets of £48,180, indicating initial financial stability. The company holds sufficient cash (£105,582) to cover short-term liabilities (£57,402), evidencing current liquidity. However, given the company’s very short trading history (just over one year) and modest scale, caution is advised. Approval is recommended subject to continued monitoring of trading performance, cash flow, and timely filing of accounts and returns.

2. Financial Strength
   The balance sheet reflects a small but positive equity base with shareholders’ funds of £48,180, largely comprising retained earnings (£48,170) as the share capital is minimal (£10). There are no fixed assets reported, suggesting the business is either service-based or asset-light. The current liabilities of £57,402 are fully covered by cash and other current assets, resulting in a positive net working capital of £48,180. The company does not carry long-term debt, which reduces financial risk. Overall, the financial position is sound for a start-up in its sector but remains modest in scale.

3. Cash Flow Assessment
   Cash at bank of £105,582 provides a strong liquidity buffer against current liabilities of £57,402, indicating the company can meet its short-term obligations comfortably. The positive net current assets demonstrate working capital adequacy. Given the company’s nature as a consultancy, cash flow volatility can arise from project timings; thus, maintaining a strong cash reserve is critical. The two employees reported suggest low fixed overheads, aiding cash flow stability. Monitoring future cash inflows from contracts will be important to ensure ongoing liquidity.

4. Monitoring Points

• Trading performance and revenue growth in subsequent periods to establish a track record.
• Continued positive cash flow generation and maintenance of healthy liquidity to cover liabilities.
• Timely filing of accounts and confirmation statements to ensure compliance.
• Monitoring creditor balances and payment terms to avoid liquidity strain.
• Watch for any related party transactions given directors hold significant control (each 25-50% share and voting rights).
• Impact of any changes in management or economic conditions on consultancy demand.