Company Number: 15088089

Analysis Date: 2025-07-20 16:00 UTC

1. Credit Opinion: DECLINE
   Duncans Motors Ltd demonstrates significant financial weakness with net liabilities of £18,670 and negative net current assets of £64,369, indicating poor short-term liquidity and an inability to cover current liabilities with current assets. The company is newly incorporated (since August 2023) and operates in the renting and leasing of cars and light motor vehicles sector, but its initial trading results show a negative equity position. This suggests the company is not currently financially stable to meet its debt obligations or support additional credit without substantial risk.

2. Financial Strength:
   The balance sheet reveals fixed assets of £202,261, but these are outweighed by current liabilities of £156,562 plus further long-term creditors of £156,562, resulting in net liabilities. Negative net current assets indicate working capital deficiencies, and shareholders’ funds are negative, reflecting accumulated losses or initial funding shortfalls. As the company is classified as a Micro entity and has no employees reported, it is likely in the very early stages of trading with limited operational scale. The lack of positive equity and heavy creditor balances undermine financial strength and solvency.

3. Cash Flow Assessment:
   Negative current assets and substantial current liabilities point to cash flow constraints. The company’s working capital is severely negative (£-64,369), meaning it cannot cover short-term debts from liquid assets. No information on cash or cash equivalents is provided, but the negative current assets figure implies likely cash shortages or high debtor/write-downs. The absence of employees and minimal operational history make cash flow forecasts uncertain and potentially volatile. Without improvement in working capital or injection of funds, liquidity risk remains high.

4. Monitoring Points:

• Improvement in net current assets and reduction of creditors, particularly current liabilities.
• Positive movement in net assets and shareholders’ funds to achieve solvency.
• Cash flow generation from operations or external financing to support liquidity.
• Directors’ strategies to grow revenue and manage costs effectively.
• Timely filing of future accounts and confirmation statements to maintain compliance.
• Any changes in ownership or significant control that may affect financial stability.