Company Number: 12402619

Analysis Date: 2025-07-29 15:16 UTC

1. Risk Rating: MEDIUM
   Duke's Life Ltd demonstrates some positive net asset growth and maintains compliance with filing deadlines. However, the presence of significant liabilities alongside a small asset base and micro-entity status introduces moderate solvency and liquidity risks typical of a small, early-stage company.

2. Key Concerns:

• Current Liabilities Exceeding Current Assets in Presentation: Although the reported current liabilities are shown as negative numbers (which appears to be a formatting issue), the absolute values (£54,723 in 2024) are material compared to current assets (£20,998). This suggests the company has substantial short-term obligations relative to its liquid assets, potentially impacting liquidity.
• Long-Term Creditors: Creditors falling due after more than one year stand at £31,278 as of 2024, indicating medium-term debt obligations that need to be monitored for refinancing or repayment capacity.
• Negative Share Capital Base Historically: The company reported negative net assets in the first two years (2020 and 2021), indicating prior accumulated losses or capital deficits, though this has improved recently. The turnaround needs verification regarding the sustainability of profitability.

3. Positive Indicators:

• Improving Net Assets and Shareholders’ Funds: Net assets increased from £-6,094 in 2021 to £43,410 in 2024, reflecting better financial health and possible profitability or capital injection.
• Compliance and Timeliness: The company has filed accounts and confirmation statements on time with no overdue filings, indicating good regulatory compliance.
• Stable Management and Ownership: The same director (Mr Rohit Gupta) has been in place since incorporation, and PSC information shows clear ownership without red flags such as disqualifications.

4. Due Diligence Notes:

• Clarify Presentation of Current Liabilities: The negative figures for current liabilities may be a reporting or formatting anomaly; verify the actual liabilities figure and confirm working capital status.
• Review Profit & Loss and Cash Flow Statements: Since only balance sheet snapshots are available, analysis of income statements and cash flows is essential to confirm operational sustainability and cash generation.
• Assess Debt Terms and Covenants: Investigate the nature and terms of creditors falling due after one year to understand refinancing risks or restrictive covenants.
• Confirm Capital Contributions: Determine whether recent increases in net assets are due to operational profits or capital injections, and assess future capital requirements.