DUNVEGAN CONSULTING LTD

Executive Summary

Dunvegan Consulting Ltd, a micro-entity incorporated in early 2024, shows a weak financial profile with negative equity and significant liquidity shortfall at its first year-end. The company relies on director advances for funding and has yet to demonstrate operational cash flows or profitability, presenting elevated credit risk. Approval of credit facilities is not recommended at this stage without significant improvement in financial performance and liquidity.

DUNVEGAN CONSULTING LTD - Analysis Report

Company Number: 15399317

Analysis Date: 2025-07-29 15:17 UTC

1. Credit Opinion: DECLINE
   Dunvegan Consulting Ltd is a very recently incorporated micro-entity (Jan 2024) showing a negative net worth of £16,992 at its first year-end (Jan 2025) and current liabilities of £67,438 exceeding current assets of £14,888 by a substantial margin. The company’s working capital is deeply negative, indicating an immediate liquidity strain and an inability to meet short-term obligations without additional financing. The director has provided interest-free advances (£17,189 outstanding), suggesting reliance on related-party funding to sustain operations. No operating income or turnover data was disclosed, nor employees, implying minimal or no trading activity to date. Given these factors, the company currently lacks financial resilience and capacity to service external debt or credit facilities.

2. Financial Strength:
   The balance sheet shows fixed assets of £35,411 but these are outweighed by current liabilities of £67,438, resulting in negative net current assets and shareholders’ funds (£-16,992). Negative equity at this early stage points to initial losses or cash injections from the director rather than operational profits. The absence of retained earnings or accumulated reserves confirms no profitability yet. The company's micro entity status limits disclosure detail, but the financial structure is weak with dependency on director advances and no visible revenue stream.

3. Cash Flow Assessment:
   Current assets of £14,888 primarily represent cash or receivables, which fall far short of current liabilities. The negative working capital position indicates liquidity risk and suggests cash flow difficulties in meeting short-term payables. The director’s advances provide short-term liquidity support but there are no fixed repayment terms or interest, which may limit sustainability. Without evidence of operational cash inflows or external financing, the company’s cash flow position remains precarious.

4. Monitoring Points:

• Turnover and operating profitability in the next financial period to assess business viability.
• Changes in working capital and current liabilities to monitor liquidity improvement or deterioration.
• Director funding levels and any movement toward formal external financing.
• Timely filing of accounts and confirmation statements to ensure ongoing compliance.
• Any material changes in management or business strategy that could impact financial stability.