UK DOBRO LIMITED

Executive Summary

UK DOBRO LIMITED shows significant financial distress with persistent negative net assets and net current liabilities, indicating solvency and liquidity risks. While compliant with filing requirements and stable in directorship, the absence of employees and continued capital erosion raise concerns about operational sustainability. Further investigation into the company’s cash flows, liabilities, and business activity is recommended to fully assess investment risk.

UK DOBRO LIMITED - Analysis Report

Company Number: 13099841

Analysis Date: 2025-07-20 15:38 UTC

1. Risk Rating: HIGH
   The company exhibits a weak financial position with negative net assets and net current liabilities, indicating an inability to cover short-term debts. The ongoing negative equity position and net current liabilities raise significant solvency and liquidity concerns.

2. Key Concerns:

• Negative Net Assets and Equity: The company’s net assets and shareholders’ funds are negative and deteriorating (from -£466 in 2020 to -£1,657 in 2023), signaling accumulated losses and capital erosion.
• Net Current Liabilities: Current liabilities consistently exceed current assets, with a net current liability of £11,702 in the latest year, indicating potential liquidity issues and risk in meeting short-term obligations.
• Lack of Employees and Operational Scale: The company reports zero employees, which may indicate limited operational activity or reliance on contractors; combined with minimal fixed assets and small share capital (£100), this raises questions on operational sustainability.

3. Positive Indicators:

• Timely Compliance: The company is active and up to date with its statutory filings, including accounts and confirmation statements, indicating regulatory compliance and good governance practices.
• Stable Director Appointment: The sole director has been in place since incorporation, which may suggest stability in leadership.
• Micro-entity Status: The company is categorized as a micro entity, suggesting limited complexity and potentially low overhead costs.

4. Due Diligence Notes:

• Request detailed profit and loss information to understand the source of losses and cash flow patterns, as this is not included in the micro-entity filings.
• Investigate the nature of current liabilities and any creditor arrangements to assess short-term repayment risks.
• Clarify operational model given zero employees and limited fixed assets – is the business currently trading or dormant in practice?
• Confirm if there are any off-balance sheet liabilities or contingent risks not visible in the filings.