Company Number: 13579602

Analysis Date: 2025-07-20 18:17 UTC

1. Credit Opinion: APPROVE with conditions
   Dynamic Resourcing Solutions Limited shows a stable and improving financial position with no overdue filings and an active trading status. The company has strengthened net assets and working capital over the last two years, indicating improved capacity to meet short-term obligations. However, given the company's small size, limited operational history (incorporated 2021), and modest asset base, credit approval should be conditional on continued monitoring of cash flow and debtor management to mitigate concentration and liquidity risks.

2. Financial Strength:
   The company’s balance sheet at 31 October 2023 shows net assets of £36,119, nearly doubling from £19,374 in 2022, reflecting retained earnings growth and reduced liabilities. Fixed assets are minimal (£721), appropriate for a service-oriented employment placement agency. Current assets (£43,966) are largely cash (£41,050), with debtors reduced to £2,916 from prior year £12,350, indicating improved collection or lower sales on credit. Current liabilities have decreased significantly to £8,431 from £28,833, largely due to a reduction in director’s loan account and other creditors, improving liquidity and working capital (£35,535). Overall, the balance sheet is conservative with low gearing and strong equity base, signaling financial resilience.

3. Cash Flow Assessment:
   The company holds a healthy cash balance at £41,050, which covers current liabilities nearly five times over, providing strong short-term liquidity. Debtor days appear to have improved given the reduction in trade debtors, which was a significant working capital drag previously. The director’s loan account balance has reduced markedly, which reduces related-party risk. The company relies on a small team (2 employees) and minimal fixed assets, which helps keep overheads low and cash burn manageable. There is no external debt reported, reducing fixed financial charges. Cash flow appears sufficient to service credit facilities and meet operational needs if current trading conditions persist.

4. Monitoring Points:

• Maintain close watch on debtor collection trends to ensure no deterioration that could impact liquidity.
• Monitor the director’s loan balance and other related-party transactions for potential repayment or conversion to equity.
• Track profitability and retained earnings growth to sustain balance sheet strength.
• Review any changes in credit terms with clients or suppliers that may affect working capital.
• Observe any operational expansion that might increase fixed asset investment or staffing levels, impacting cash flow.