Company Number: 13916876

Analysis Date: 2025-07-29 18:02 UTC

1. Credit Opinion: APPROVE
   DYDX Services Ltd demonstrates solid creditworthiness for a micro-entity. The company is actively trading and shows a strong positive net asset position with growing working capital. There are no signs of financial distress or overdue statutory filings. The presence of experienced directors, including a chartered accountant briefly appointed, supports sound management oversight. Given the current scale and financial profile, the company appears capable of meeting its short-term obligations and servicing modest credit facilities.

2. Financial Strength:
   The balance sheet shows a significant improvement in net assets from £90,246 in 2023 to £152,528 in 2024. Current assets nearly doubled, primarily driven by prepayments and accrued income increasing from £100,000 to £248,658. Current liabilities are modest and stable around £23k. The company maintains positive net current assets (£153k) and net assets, indicating a healthy equity base. No long-term indebtedness is reported except a minor creditor balance after one year (£500). Overall, the financial structure is conservative with low leverage and strong liquidity buffers for a micro company.

3. Cash Flow Assessment:
   While detailed cash flow statements are not available, the large increase in current assets, particularly prepayments and accrued income, suggests the company has funds tied up in advance payments or receivables. However, current liabilities remain low, providing a comfortable working capital position. The company’s net current assets increased by over 68% year-on-year, indicating improving liquidity. With only one employee, overhead costs are likely minimal, supporting manageable cash outflows. The absence of significant debt obligations reduces pressure on cash flow.

4. Monitoring Points:

• Track movement in prepayments and accrued income to ensure these are realized timely and do not mask underlying cash flow issues.
• Monitor any changes in current liabilities or introduction of debt that could affect liquidity.
• Watch for any changes in director appointments or ownership structure that might impact governance.
• Review future accounts and cash flow statements when available to confirm continued financial stability and operational performance.
• Keep an eye on business growth within the IT consultancy and research sectors to assess sustainability of revenue streams.