DYNAMIC POOL & SPAS LIMITED

Executive Summary

Dynamic Pool & Spas Limited exhibits significant liquidity and solvency concerns with negative net current assets and eroded shareholder equity over recent years. While regulatory compliance is maintained and the company remains active, the financial data suggest high risk for meeting obligations without external intervention. Further due diligence on cash flows, liabilities, and operational viability is essential before considering investment.

DYNAMIC POOL & SPAS LIMITED - Analysis Report

Company Number: 12998304

Analysis Date: 2025-07-29 15:51 UTC

1. Risk Rating: HIGH
   The company shows persistent negative net current assets and total assets less current liabilities, indicating severe liquidity and solvency issues. The net assets and shareholders’ funds are negative for the last two years, reflecting an erosion of equity capital. This raises significant concerns about the company’s ability to meet short-term obligations and continue as a going concern without external support.

2. Key Concerns:

• Negative Working Capital: Current liabilities exceed current assets by approximately £14,700 in 2024, worsening from previous years, indicating strained liquidity and potential cash flow problems.
• Declining Fixed Assets and Net Assets: Fixed assets have decreased steadily from £10,387 in 2020 to £5,658 in 2024, and net assets have declined into negative territory, suggesting asset disposals or write-downs and diminished financial resilience.
• Lack of Share Capital and Reserves: Share capital remains minimal (£1.00), and accumulated losses have eroded equity, with no indication of capital injections or retained earnings to strengthen the balance sheet.

3. Positive Indicators:

• Timely Filings and Compliance: Accounts and confirmation statements are filed on time, implying good regulatory compliance and corporate governance in terms of statutory obligations.
• Stable Employee Base: The company maintains a small but stable workforce (3 employees), which may support operational continuity without excessive fixed costs.
• Active Status with No Insolvency Proceedings: The company is active and not in liquidation, administration, or receivership, suggesting it continues trading despite financial distress.

4. Due Diligence Notes:

• Investigate the nature and terms of current liabilities and any contingent liabilities to assess short-term cash flow pressures and creditor risk.
• Review cash flow statements and management accounts (not provided here) to understand operational cash generation and funding sources.
• Assess the company’s business model and market position given the SIC codes (cleaning, specialized construction, sewerage) to evaluate operational sustainability and prospects for turnaround.
• Clarify any related party transactions, intra-group financing, or director loans that might impact solvency.
• Confirm no director disqualifications or regulatory issues exist beyond the data provided.