DYNAMIC FLUID HOLDINGS LIMITED

Executive Summary

Dynamic Fluid Holdings Limited shows a strong and improving financial position for a newly incorporated micro-entity, with solid net asset growth and good liquidity. The company’s balance sheet and governance structure support an approval recommendation for credit facilities. Continued monitoring of liquidity composition and operational profitability is advised as the business develops.

DYNAMIC FLUID HOLDINGS LIMITED - Analysis Report

Company Number: 14760265

Analysis Date: 2025-07-19 12:05 UTC

1. Credit Opinion: APPROVE
   Dynamic Fluid Holdings Limited demonstrates a solid financial position for a micro-entity in its early stages. The company has shown significant improvement in net assets from £100 in 2023 to £300,100 in 2024, driven by a substantial increase in current assets. Directors are experienced and hold significant control, indicating stable governance. The company’s ability to maintain positive net current assets and equity suggests it can meet short-term obligations and service credit facilities.

2. Financial Strength:
   The balance sheet shows fixed assets stable at approximately £100,000 and current assets increasing sharply to £300,000 by the end of 2024. Current liabilities remain steady around £100,190, resulting in net current assets of £199,810. Net assets and shareholders’ funds rose from £100 to £300,100, reflecting capital injections or retained earnings. This growth indicates improving financial strength and capitalization, appropriate for a micro-entity holding company.

3. Cash Flow Assessment:
   The large balance of current assets relative to current liabilities suggests strong liquidity and working capital management. With current assets at £300,000 and current liabilities at £100,190, the company has a current ratio of approximately 3:1, signaling a comfortable buffer to cover short-term debts. Although detailed cash flow statements are not provided, the net current asset position and positive equity imply adequate operational cash flow and minimal liquidity risk at this stage.

4. Monitoring Points:

• Monitor the composition of current assets to ensure liquidity is maintained (i.e., cash versus receivables or other less liquid items).
• Track profitability and cash flow from operations once profit and loss accounts are available to confirm ongoing debt servicing capacity.
• Observe any significant changes in liabilities or asset impairments that may affect net asset value.
• Review director performance and any changes in ownership/control to maintain governance oversight.