DYNAM SERVICES LTD

Executive Summary

Dynam Services Ltd has demonstrated a significant financial turnaround from loss and negative net assets to a positive equity position over the past two years. While still a small micro-entity with limited scale, the improved liquidity and solvency provide a basis for conditional credit approval, subject to ongoing monitoring of cash flow and financial compliance. Continued positive financial performance and prudent management are key to mitigating risk going forward.

DYNAM SERVICES LTD - Analysis Report

Company Number: 13246024

Analysis Date: 2025-07-20 18:06 UTC

1. Credit Opinion: CONDITIONAL APPROVAL
   Dynam Services Ltd shows improving financial health after early losses. The company moved from negative net assets (£-4,024 in 2022) to positive net assets (£4,498 in 2023), indicating a turnaround in financial position. However, the company remains a micro entity with limited scale and a single director, which increases risk. Approval is conditional on continued positive cash flow and timely filing of accounts to monitor ongoing recovery.

2. Financial Strength:
   The balance sheet shows a marked improvement over two years. Current assets increased from £351 to £7,726, while current liabilities rose moderately from £4,122 to £7,762. The net current assets position improved to a positive £4,964 in 2023 compared to a negative £3,771 in 2022. Total net assets turned positive from a deficit of £4,024 to £4,498, reflecting accumulated retained earnings or capital injection. The share capital remains nominal (£100), suggesting limited equity buffer but the company is no longer insolvent.

3. Cash Flow Assessment:
   The increase in current assets and positive net current assets position suggests improved liquidity. However, the current liabilities remain close to current assets, indicating working capital is tight. The presence of prepayments and accrued income (£5,000) supports short-term asset strength. With only one employee (the director), operating costs are likely low, which reduces cash burn risk. Continuous monitoring of cash flow statements would be advisable to confirm operational liquidity.

4. Monitoring Points:

• Maintain positive net current assets and net assets trends in future accounts.
• Monitor timely submission of statutory filings to ensure compliance and transparency.
• Watch for any growth in liabilities that outpaces asset growth.
• Observe revenue and profit progression in subsequent periods to confirm business sustainability.
• Track director’s financial stewardship and presence of any related party transactions or unusual creditor balances.