3DCMM LIMITED

Executive Summary

3DCMM LIMITED is a very young and small engineering design company with a fragile financial position characterized by negative working capital and minimal equity. The business relies significantly on director advances to sustain operations and exhibits limited capacity to comfortably service external debt. Conditional credit approval is recommended with stringent monitoring of liquidity, debtor management, and director support.

3DCMM LIMITED - Analysis Report

Company Number: 14401142

Analysis Date: 2025-07-20 19:05 UTC

Credit Opinion:
CONDITIONAL APPROVAL. 3DCMM LIMITED is a very young private limited company incorporated in 2022, currently active and operating in engineering design activities for industrial process and production. The company exhibits a very weak financial position with net current liabilities and minimal net assets, indicating limited buffer against liquidity risks. While there is no indication of insolvency or overdue filings, the company’s ability to service debt obligations is constrained by negative working capital and reliance on director advances. Credit should be extended only under strict conditions, including close monitoring of cash flow and possibly secured or guaranteed facilities.

Financial Strength:
The balance sheet shows a marginal net asset position (£93 at 31 October 2024) down from £417 the previous year, driven by a small tangible fixed asset base (£645) and current assets of £17,132 against current liabilities of £17,684. The company has consistently reported negative net current assets, indicating working capital deficits. Shareholders’ funds have diminished, partly due to retained losses (£7 deficit in reserves). The company’s capital base is minimal (£100 share capital), which limits its financial robustness. The presence of director loans (over £6,000 combined) supports the company’s capital but indicates dependence on internal financing rather than external creditworthiness.

Cash Flow Assessment:
Cash on hand is low (£1,831 at year end), and the company’s liquidity position is tight with current liabilities exceeding current assets. Debtors increased year-on-year (£15,301 vs. £10,122), which could strain liquidity if collections are slow. The company’s cash flows appear reliant on director advances, which have increased during the year, suggesting operational cash flow is insufficient to meet obligations. There is a risk of payment delays to suppliers or tax authorities given the sizeable taxation and social security creditors (£16,454). Overall, liquidity is fragile, and the company may struggle to meet short-term debt commitments without additional funding or improved cash conversion.

Monitoring Points:

• Track improvements or deterioration in net current assets and liquidity ratios on next accounts.
• Monitor director loan balances and any changes in their willingness to provide financial support.
• Review debtor aging and cash collection efficiency to ensure timely cash inflows.
• Keep a close watch on tax liabilities and payments to avoid enforcement actions.
• Assess any changes in business scale or contracts that might improve turnover and profitability.
• Confirm that management maintains compliance with filing deadlines and statutory obligations.