DUKERIES LIVING LIMITED

Executive Summary

Dukeries Living Limited is a newly formed small private company with a positive net current asset position and strong cash reserves, supporting its short-term liquidity. While the absence of historical profitability data limits a full credit assessment, the current financial structure demonstrates initial financial strength with no debt. Conditional credit approval is recommended with ongoing monitoring of trading results, cash flows, and working capital management to mitigate early-stage risks.

DUKERIES LIVING LIMITED - Analysis Report

Company Number: 14571964

Analysis Date: 2025-07-20 15:47 UTC

1. Credit Opinion: CONDITIONAL APPROVAL
   Dukeries Living Limited is a very young company, incorporated in January 2023, with its first financial period ending June 2024. The company operates in the building project development sector (SIC 41100). The financials show a positive net current asset position and shareholders’ funds, indicating a modest but stable equity base. However, as a new entity with limited operational history and no profit and loss data filed, the credit risk is moderate. Approval is conditional on continued monitoring of trading performance and cash flow, especially given the industry’s sensitivity to economic cycles and project timing risks.

2. Financial Strength:

• Total current assets stand at £445k, primarily cash (£370k) and stock (£70k).
• Current liabilities total £325k, resulting in net current assets of £120k, which is positive and suggests short-term obligations are covered.
• Shareholders’ funds amount to £120k, reflecting initial capital and retained earnings since incorporation.
• The balance sheet does not show any long-term liabilities or debt, indicating no gearing risk at this stage.
• The company is classified as “small” exempt from audit, and financial statements are unaudited; this requires cautious interpretation.

3. Cash Flow Assessment:

• High cash reserves of £370k relative to liabilities provide liquidity comfort and indicate good working capital management.
• Debtors are minimal (£4.7k), signifying limited credit exposure to customers currently.
• Stock at £70k is moderate; attention should be paid to stock turnover rates in future periods to avoid obsolete inventory risk.
• Current liabilities include tax and other creditors totaling £325k, which are significant but manageable given the cash position.
• The absence of detailed income and cash flow statements limits assessment of operating cash generation; ongoing cash flow monitoring is essential.

4. Monitoring Points:

• Trading performance and profitability metrics once full accounts are available.
• Cash flow trends and working capital cycle, especially stock levels and debtor days.
• Payment patterns to suppliers and tax authorities to avoid liquidity strain.
• Any new borrowings or financial commitments impacting leverage or covenant compliance.
• Management’s ability to secure and deliver building development contracts on schedule in a potentially volatile market.
• Director and shareholder stability—currently Stephen Clarke and Stacey Clarke hold significant control, indicating concentrated ownership which can be positive for oversight but may raise succession risks.