FIX IT DAN LIMITED

Executive Summary

Fix It Dan Limited is currently facing high liquidity risk evidenced by net current liabilities and a sharp increase in short-term creditors, which heightens solvency concerns. Despite timely regulatory filings and asset investments, the company's declining net assets and working capital deficit warrant careful investigation of creditor obligations and cash flow sustainability before investment. Further due diligence on financial trends and operational stability is recommended.

FIX IT DAN LIMITED - Analysis Report

Company Number: 12718587

Analysis Date: 2025-07-20 18:26 UTC

1. Risk Rating: HIGH
   The company exhibits significant deterioration in its liquidity position with net current liabilities of £13,298 as at 31 July 2024, compared to net current assets of £14,064 the prior year. The current liabilities have increased sharply from £17,249 to £68,889, outpacing growth in current assets and cash balances. This negative working capital indicates potential difficulty meeting short-term obligations, posing a solvency risk.

2. Key Concerns:

• Liquidity Strain: The net current liabilities position signals cash flow pressure, risking inability to cover debts as they fall due.
• Rapid Increase in Creditors: Current liabilities surged nearly fourfold, driven by other creditors and tax/social security liabilities, which requires scrutiny for payment terms or overdue obligations.
• Declining Net Assets: Net assets reduced substantially from £16,507 in 2023 to £5,483 in 2024, suggesting recent losses or increased liabilities impacting the capital base.

3. Positive Indicators:

• Ongoing Compliance: The company has filed accounts and confirmation statements on time with no overdue filings, indicating sound regulatory compliance.
• Asset Growth: Fixed assets increased significantly due to investment primarily in motor vehicles, potentially supporting operational capacity.
• Stable Workforce: Maintains a consistent small employee base (2 employees), which may help control operating costs.

4. Due Diligence Notes:

• Investigate the nature and aging of the increased current liabilities, particularly other creditors and tax/social security obligations, to assess payment risk.
• Review recent profitability trends and cash flow statements to understand the causes of net asset decline and liquidity stress.
• Confirm if the company has any contingent liabilities or off-balance sheet obligations not reflected in the accounts.
• Assess customer concentration and debtor recoverability given the trade debtors rose to £28,965 but cash flow pressure persists.
• Examine contract terms and pipeline in the painting industry (SIC 43341) to evaluate revenue sustainability.