SWC DMA LIMITED

Executive Summary

SWC DMA LIMITED currently exhibits weak financial health with negative net assets and insufficient working capital to cover liabilities. The company’s micro size, lack of employees, and absence of fixed assets further limit its operational and financial resilience. Based on available data, the risk of credit default is high, and credit facilities are not recommended at this stage.

SWC DMA LIMITED - Analysis Report

Company Number: 13644078

Analysis Date: 2025-07-20 14:20 UTC

1. Credit Opinion: DECLINE
   SWC DMA LIMITED shows a fragile financial position with net liabilities reported in the latest accounts. The company's net current assets are negative at £195, and overall net liabilities stand at £295 as of September 2023. This indicates an inability to cover short-term debts with current assets, suggesting liquidity stress. Additionally, the company is a micro-entity with no employees and no fixed assets, which points to limited operational scale and financial resilience. Without evidence of positive cash flow or capital injection, the risk of default on credit obligations is elevated. Therefore, credit approval is not recommended at this time.

2. Financial Strength:
   The balance sheet reflects a weak financial structure characterized by negative net current assets and net liabilities. Current liabilities increased threefold from £100 to £300 year-on-year, while current assets only marginally increased from £49 to £105, worsening the working capital deficit. The absence of fixed assets and no retained earnings or reserves further limit the company's financial buffer. Shareholders’ funds are negative, indicating the owner’s capital contribution has not offset accumulated losses or liabilities. Overall, the financial strength is poor and insufficient to support additional credit exposure.

3. Cash Flow Assessment:
   The company reported no employees and minimal current assets, implying very limited operational activity and cash inflows. Negative net current assets signal working capital deficiencies and potential cash flow constraints. No indication exists of cash reserves or short-term investments to meet immediate liabilities. The £100 provision for liabilities newly recognized in 2023 also pressures liquidity. Without positive cash flow generation or external financing, the company’s ability to service debt and meet payment obligations is doubtful.

4. Monitoring Points:

• Track subsequent filings for improvements in net current assets and reduction in liabilities.
• Monitor cash flow statements (when available) for positive operating cash generation.
• Watch for capital injections or shareholder loans to bolster liquidity.
• Review any changes in director or ownership structure that might impact financial strategy.
• Keep an eye on overdue filings or changes in company status indicating distress.