DYNAMIC RESOURCES LTD

Executive Summary

Dynamic Resources Ltd presents a low financial risk profile with strong liquidity and increasing net assets, supported by up-to-date filings and stable governance. However, limited public financial detail and small scale warrant further investigation into profitability and business sustainability. Overall, the company appears solvent and compliant but would benefit from deeper due diligence on operational and cash flow aspects.

DYNAMIC RESOURCES LTD - Analysis Report

Company Number: SC684455

Analysis Date: 2025-07-29 14:26 UTC

1. Risk Rating: LOW
   Dynamic Resources Ltd demonstrates a solid solvency position with net assets increasing substantially over recent years. The company is current with all statutory filings and shows no signs of financial distress or regulatory non-compliance.

2. Key Concerns:

• Limited scale: As a micro-entity with only one employee and minimal fixed assets, business diversification and operational scalability are limited.
• Concentration risk: Single director and presumably single decision-maker may present governance and operational continuity risks.
• Lack of detailed financial disclosures: Micro-entity reporting limits insight into profitability, cash flow, and contingent liabilities, restricting thorough financial risk assessment.

3. Positive Indicators:

• Strong liquidity: Current assets significantly exceed current liabilities, with net current assets improving markedly from £3,965 in 2020 to £94,064 in 2024.
• Growing net assets: Shareholders' funds have grown steadily from £3,947 at incorporation to £94,567 in the latest year, indicating retained earnings or capital injections.
• Compliance: No overdue accounts or confirmation statements; filings are up to date, reflecting good regulatory adherence.
• Stable management: Same director since incorporation with no public disqualification records, supporting operational stability.

4. Due Diligence Notes:

• Obtain management accounts or profit and loss statements to assess operational profitability and cash flow dynamics, as micro-entity accounts omit these details.
• Investigate nature and source of increases in current assets and net assets to confirm sustainable revenue streams or capital contributions.
• Review client contracts or business pipeline to evaluate operational sustainability given the limited employee base and small asset footprint.
• Confirm absence of contingent liabilities or off-balance-sheet obligations that could impact solvency.
• Assess director’s background further for experience and capacity to grow the business.