DUSTON CHIMNEY SWEEPS LTD

Executive Summary

The company shows signs of recovering financial strength with positive net assets after an initial deficit, but ongoing negative working capital and reliance on director loans highlight moderate liquidity and solvency risks. Its recent formation and small operational scale warrant caution regarding sustainability. Regulatory compliance appears satisfactory with all filings current.

DUSTON CHIMNEY SWEEPS LTD - Analysis Report

Company Number: 14226248

Analysis Date: 2025-07-19 13:05 UTC

1. Risk Rating: MEDIUM
   While the company has returned to a positive net asset position as of the most recent financial year, its persistent negative net current assets and reliance on a director’s loan account pose moderate solvency and liquidity risks. The limited scale and recent incorporation also add uncertainty regarding operational stability.

2. Key Concerns:

• Negative Net Current Assets: The company shows a working capital deficit (£-2,481 in 2024), indicating potential short-term liquidity pressure to meet immediate obligations.
• High Director’s Loan Liability: A significant portion of current liabilities (£2,634) is owed to the director, suggesting dependence on related party funding rather than external financing. This could impact financial flexibility.
• Limited Operating Scale and History: Incorporated in July 2022, with only one employee and small asset base, the company has limited operating history and scale, which may affect sustainability and resilience to market fluctuations.

3. Positive Indicators:

• Return to Positive Net Assets: The company moved from a net liability position in 2023 (£-129) to net assets of £2,194 in 2024, indicating improved financial health.
• Timely Filing and Compliance: Accounts and confirmation statements are up to date with no overdue filings, reflecting sound regulatory compliance and governance practices.
• Stable Ownership and Control: The sole significant controller is a single director with full ownership and voting rights, potentially supporting streamlined decision-making.

4. Due Diligence Notes:

• Review the composition and terms of the director’s loan account to assess repayment plans and risk of capital withdrawal.
• Obtain management accounts or cash flow forecasts to evaluate short-term liquidity and operational cash generation.
• Investigate customer concentration and contract stability given the small size and niche market for chimney cleaning services.
• Confirm that the company’s limited exemption filing regime does not conceal operational risks or unusual related party transactions.