DYNAMITE BILLIARDS LTD

Executive Summary

Dynamite Billiards Ltd is an active micro-entity company with a short operating history and consistent negative net asset position, indicating high solvency and liquidity risk. While statutory compliance is maintained, the absence of employees and ongoing working capital deficits raise concerns over operational sustainability. Further investigation into the company’s business activities and financial support mechanisms is recommended before considering investment.

DYNAMITE BILLIARDS LTD - Analysis Report

Company Number: 14415386

Analysis Date: 2025-07-29 20:06 UTC

1. Risk Rating: HIGH
   The company exhibits significant solvency risk as evidenced by persistent negative net assets and net current liabilities over the last three years. The capital and reserves position remains deeply negative, indicating an ongoing erosion of equity and inability to cover short-term obligations.

2. Key Concerns:

• Negative Net Assets: The company reported net liabilities of £3,296 for the year ended 31 October 2024, worsening only slightly from £4,194 the previous year, indicating continued erosion of shareholder equity.
• Working Capital Deficit: Current liabilities exceed current assets by £2,288 as of the latest accounts, suggesting liquidity challenges to meet short-term obligations.
• No Employees and Limited Operational History: The company has zero employees and was incorporated recently (October 2022), raising questions about operational scale and business sustainability.

3. Positive Indicators:

• Timely Filings: The company’s accounts and confirmation statements are up to date with no overdue filings, demonstrating compliance with statutory requirements.
• Single Shareholder Control: Majority control by one individual (Mr. Darren Lee Appleton) may facilitate swift decision-making and potential capital infusion if required.
• Micro-Entity Status: The company operates within a micro-entity framework, limiting complexity and reporting requirements, which may align with a lean business model.

4. Due Diligence Notes:

• Investigate the company’s business model and revenue generation plans given the lack of employees and persistent losses.
• Review any related party transactions or director loans that may be supporting the business financially.
• Assess cash flow statements or bank records (not provided) to verify liquidity beyond balance sheet snapshots.
• Confirm whether the company has any contingent liabilities or overdue debts not reflected in the accounts.
• Consider the reputation and financial backing of the sole director and shareholder for potential support.