DVIVE LIMITED

Executive Summary

DVIVE LIMITED exhibits significant financial stress with negative net assets and sharply increasing current liabilities outpacing current assets. The company’s micro-entity size, lack of fixed assets, and negative working capital pose a high credit risk. Without clear evidence of capital support or operational improvement, credit facilities are not recommended at this stage.

DVIVE LIMITED - Analysis Report

Company Number: 13920972

Analysis Date: 2025-07-29 12:17 UTC

1. Credit Opinion: DECLINE
   DVIVE LIMITED demonstrates significant liquidity and solvency concerns. The company’s net current liabilities have worsened markedly from -£110k in 2023 to -£288k in 2024, indicating an inability to cover short-term obligations with current assets. The net assets position is negative and deteriorating, signaling an erosion of shareholders’ funds and balance sheet weakness. The company is micro-sized and relatively new (incorporated 2022), with limited financial history and no fixed assets to support borrowing. These factors collectively point to high credit risk and a poor capacity to service debt or meet commercial commitments without additional capital injection or operational turnaround.

2. Financial Strength:
   The balance sheet shows zero fixed assets and a growing imbalance between current liabilities (£327k) and current assets (£39k) at the latest year-end. Negative net current assets of -£288k reflect acute working capital deficiency. Shareholders’ funds are negative at -£288k, indicating accumulated losses or liabilities exceeding assets. The increase in liabilities by almost threefold within one year without a corresponding rise in assets is a red flag. The company’s micro-entity status limits disclosure but the available data suggests financial fragility and limited resilience to economic shocks.

3. Cash Flow Assessment:
   Current assets are primarily cash and receivables (£39k), insufficient to meet current liabilities of £327k, implying liquidity stress. Working capital is deeply negative, which raises concerns about the company’s ability to fund day-to-day operations or repay creditors on time. The absence of fixed assets means there is no collateral to support borrowing or credit lines. Without improved cash flow generation or equity support, the company faces potential cash flow insolvency.

4. Monitoring Points:

• Monitor changes in current liabilities and receivables to assess working capital trends.
• Watch for capital injections or shareholder loans that improve equity and liquidity.
• Review future filed accounts for profitability indicators and cash flow improvements.
• Track management changes and strategic plans addressing financial stability.
• Assess payment history with suppliers and creditors for signs of distress.