D L J ELECTRICAL CONTRACTORS LTD

Executive Summary

D L J Electrical Contractors Ltd has shown a significant improvement in financial position since inception, with strong liquidity and positive net assets enhancing creditworthiness. The company’s manageable liabilities and healthy cash reserves support its ability to meet short-term obligations. Continued monitoring of cash flow and credit control is recommended to maintain financial stability.

D L J ELECTRICAL CONTRACTORS LTD - Analysis Report

Company Number: 12830612

Analysis Date: 2025-07-20 15:40 UTC

Credit Opinion:
APPROVE with caution. D L J Electrical Contractors Ltd demonstrates a positive turnaround in financial health over recent years, with net assets improving from negative in 2020 to a solid positive position in 2023. The company maintains a strong liquidity position with significant cash reserves relative to current liabilities. However, limited historical data due to its recent incorporation and relatively small scale of operations warrant ongoing monitoring.

Financial Strength:
The company’s balance sheet shows steady improvement. Net assets increased from a deficit of £14,113 in 2020 to £76,474 in 2023, indicating enhanced capitalisation and retained earnings. Tangible fixed assets rose to £23,303 with some financed through hire purchase contracts, which introduces some long-term liabilities but manageable given overall asset base. Shareholders’ funds mirror net assets and are entirely retained earnings except for £1 share capital. The company remains within the small company category, reflecting modest scale but growing stability.

Cash Flow Assessment:
Liquidity is robust, with current assets of £152,957 against current liabilities of £93,972, yielding net current assets of £58,985. Notably, cash at bank increased sharply from £42,235 in 2022 to £131,039 in 2023, providing strong short-term liquidity to cover obligations. Debtors decreased substantially, which may reflect effective credit control or lower sales, but overall working capital remains positive. The increase in trade creditors and taxation liabilities is consistent with business growth. The hire purchase liabilities are moderate and well covered by current assets and cash.

Monitoring Points:

• Track debtor days and credit control to ensure continued cash flow stability.
• Monitor hire purchase and lease commitments to prevent over-leveraging.
• Watch profitability trends as income statement data is not available; assess future filings for earnings and margin consistency.
• Review director’s advances and related party transactions for any emerging risks.
• Stay alert to any changes in tax liabilities or provisions which could impact liquidity.