DYLORIS LTD

Executive Summary

The company demonstrates modest improvement in liquidity and maintains compliant filings, yet remains financially fragile due to its small capital base and fluctuating working capital. The micro-entity scale and single-employee operation suggest limited operational capacity. Close scrutiny of cash flows and business viability is recommended before considering investment.

DYLORIS LTD - Analysis Report

Company Number: 13022820

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

1. Risk Rating: MEDIUM
   The company shows recent improvement in net current assets from a prior negative position, indicating some recovery in short-term solvency. However, the small absolute values of assets and equity, combined with volatility in net current assets, suggest moderate financial fragility typical of a micro-entity startup. This warrants cautious monitoring.

2. Key Concerns:

• Volatile Working Capital: The net current assets swung from a substantial deficit of £3,949 in 2023 to a positive £1,389 in 2024, highlighting potential instability in liquidity management.
• Minimal Share Capital and Reserves: With share capital at £1 and net assets under £1,400, the company has a very limited financial buffer to absorb losses or fund growth.
• Single-Employee Operation: The company operates with just one employee, which may constrain operational capacity and scalability, raising questions about sustainability.

3. Positive Indicators:

• Timely Filing and Compliance: The company is current on both accounts and confirmation statement filings with no overdue reports, indicating good regulatory compliance.
• Improved Liquidity Position: The reversal from negative to positive net current assets suggests management has taken steps to stabilize short-term finances.
• Continuity of Control: A consistent controlling interest by the same individuals provides stability in governance and decision-making.

4. Due Diligence Notes:

• Examine Cash Flow Details: Investigate cash flow statements or bank statements to confirm the sources of improved liquidity and assess ongoing cash generation capability.
• Review Business Model and Revenue Streams: Given the micro-size and limited staff, understanding how the company generates revenue and sustains operations is critical.
• Assess Related Party Transactions: Given the controlling shareholders' majority voting and shareholding, verify if there are any related party transactions that could impact financial health or governance.