DUSTIN FRONT LIMITED

Executive Summary

Dustin Front Limited is a small, active sports-related business with adequate working capital but showing a recent decline in equity and net current assets. The company demonstrates sufficient liquidity to meet short-term obligations but requires ongoing financial discipline to strengthen its modest capital base. Conditional credit approval is recommended, contingent on regular monitoring of profitability and cash flow metrics to mitigate risk.

DUSTIN FRONT LIMITED - Analysis Report

Company Number: 13627390

Analysis Date: 2025-07-20 14:31 UTC

1. Credit Opinion: CONDITIONAL APPROVAL
   Dustin Front Limited is a micro-entity operating in "Other sports activities" with a short trading history since incorporation in 2021. The company shows a modest but positive net asset base (£8,389 as of 30/09/2024) and adequate net current assets (£18,046), indicating working capital sufficiency. However, a decline in net assets and net current assets compared to prior years signals some weakening financial position. Given the small scale, limited fixed assets, and slight erosion of equity, the company can be considered capable of meeting short-term obligations but may face challenges in scaling or absorbing shocks. Approval should be conditional on ongoing monitoring of profitability, cash flows, and creditor terms.

2. Financial Strength:
   The balance sheet reflects a stable capital structure with no long-term debt and shareholders' funds covering net assets. Fixed assets are minimal (£736) and declining, typical for a micro-entity in services rather than capital-intensive sectors. Current assets primarily consist of cash or receivables (£29,201), with current liabilities at £12,280. The net current asset position is healthy but has decreased year-on-year, suggesting tighter liquidity management is needed. The company’s equity has decreased from £10,340 in 2023 to £8,389 in 2024, indicating some retained losses or distributions, which should be investigated further.

3. Cash Flow Assessment:
   While direct cash flow statements are not provided, the balance sheet trends imply the company maintains positive working capital with current assets exceeding current liabilities by a reasonable margin. The drop in current assets and net current assets compared to prior years warrants attention to cash conversion cycles and debtor collection efficiency. The stable number of employees (2) suggests controlled operating expenses. Overall, liquidity appears sufficient for ongoing operations but margins may be thin, requiring close management of payables and receivables to avoid cash flow strain.

4. Monitoring Points:

• Continued trend in net assets and equity: Watch for further erosion or recovery.
• Working capital dynamics: Monitor debtor days, creditor days, and cash balances regularly.
• Profitability and retained earnings: Ensure the company generates adequate surplus to sustain equity.
• Director involvement and governance: Jacqueline Dustin is the sole director, and oversight should confirm prudent financial stewardship.
• Industry risk: The niche sports activity sector may be sensitive to economic cycles; assess external market conditions periodically.