PURPLE DOT STORAGE LIMITED

Executive Summary

Purple Dot Storage Limited is a non-trading subsidiary with negative working capital and minimal equity, demonstrating no operational cash flow or profitability. The company’s financial profile lacks the strength and liquidity to support independent credit, leading to a decline recommendation for lending or credit facilities at this stage. Close monitoring of any operational developments or financial support from the parent group is advised before reconsidering credit exposure.

PURPLE DOT STORAGE LIMITED - Analysis Report

Company Number: 14016959

Analysis Date: 2025-07-29 19:13 UTC

1. Credit Opinion: DECLINE

Purple Dot Storage Limited is a very recently incorporated private limited company (March 2022) operating in warehousing and storage. The financial information shows minimal activity with no turnover or profit disclosed and persistent net current liabilities of £1,567 over three years. The company’s balance sheet is extremely thin with only £100 in shareholders’ funds and very limited current assets (£100 debtors) compared to current liabilities (£1,667). The fixed assets reported are investments in subsidiaries (£1,667), indicating that the company acts mainly as a holding or investment vehicle rather than an operational entity generating cash flow. There is no evidence of operational revenue or cash inflows that would support debt servicing. The company is wholly owned by Double A Group Trading Limited with the ultimate controlling party being the same director, which may imply funding support but does not mitigate the company’s standalone credit risk. Given the lack of trading activity, negative working capital, and absence of cash flow generation, the company is not currently in a position to service external debt or commercial credit facilities.

2. Financial Strength:

• Total assets less current liabilities stand at only £100.
• Net current liabilities are constant at £1,567, indicating negative working capital.
• Shareholders’ funds are minimal at £100, showing very low equity buffer.
• The balance sheet is dominated by investments in subsidiaries, not liquid or operational assets.
• No profit and loss data provided; no indication of earnings or profitability.
• Financial position is static over the last three reported years, showing no growth or improvement.

3. Cash Flow Assessment:

• Current assets are limited to £100 of debtors; no cash or equivalents reported.
• Current liabilities are £1,667, resulting in a liquidity shortfall.
• Negative net current assets indicate the company is likely dependent on external funding or group support for working capital needs.
• No cash flow statements or income statements filed; inability to assess operating cash generation.
• Company’s ability to meet short-term obligations independently is weak.

4. Monitoring Points:

• Watch for any filing of profit and loss accounts or cash flow statements indicating operational activity.
• Monitor changes in working capital, particularly current assets and liabilities to assess liquidity improvements.
• Assess any changes in share capital or external funding injections that might strengthen equity.
• Review group support or guarantees if the company seeks credit facilities.
• Track director and secretary appointments and any changes in ownership or control that may impact risk profile.