MY DREAM HOUSE LIMITED

Executive Summary

My Dream House Limited is financially distressed with negative net assets and severe liquidity issues, making it unable to meet debt obligations. The company’s balance sheet is weak, showing net current liabilities over £365k and no operational activity or employee base. Credit approval is not recommended without significant financial restructuring or improvement in liquidity and profitability.

MY DREAM HOUSE LIMITED - Analysis Report

Company Number: 14076079

Analysis Date: 2025-07-29 19:51 UTC

1. Credit Opinion: DECLINE
   My Dream House Limited exhibits significant financial stress with persistent net liabilities, negative working capital, and no employee base to support operations. The company’s net assets are negative (£-821) and have deteriorated year-on-year, indicating insufficient capital to cover liabilities. Current liabilities (£368,443) vastly exceed current assets (£2,492), resulting in a critical liquidity issue that undermines its ability to meet short-term obligations. The absence of turnover or profit data combined with no staff suggests limited operational activity or revenue generation. Given these factors, the risk of default is high and credit extension is not advised.

2. Financial Strength:
   The balance sheet shows fixed assets of £365,670, which appear stable, but are heavily outweighed by current liabilities of £368,443. The company’s net current liabilities have increased slightly from £-365,411 to £-365,951. Total net liabilities indicate erosion of shareholder funds and lack of retained earnings or reserves to absorb losses. The micro-entity accounts filed show minimal current assets (£2,492) and no indication of improving capital structure. Overall, financial strength is weak with poor solvency metrics.

3. Cash Flow Assessment:
   Current assets predominantly represent cash or equivalents but are minimal relative to liabilities. The severe negative working capital position signals liquidity constraints and an inability to cover short-term debts without external financing or asset disposals. No employees and no reported profit/loss data imply limited operating cash inflows. The company’s cash flow position is fragile and insufficient to support debt service or new credit facilities.

4. Monitoring Points:

• Improvements in net current assets and positive working capital generation.
• Evidence of revenue generation or operational cash flows.
• Changes in liabilities or restructuring plans to reduce creditor exposure.
• Directors’ actions to inject equity or improve solvency.
• Filing of full accounts including profit and loss statements for better cash flow insight.