DC COMPLIANCE SERVICES LIMITED

Executive Summary

DC Compliance Services Limited shows a strengthening balance sheet with growing fixed assets and net equity but a significant reduction in liquidity as current assets have declined sharply. The company’s micro-entity status and limited financial disclosures constrain full credit assessment. Conditional credit approval is recommended with ongoing monitoring of liquidity and operational performance to ensure debt servicing capability.

DC COMPLIANCE SERVICES LIMITED - Analysis Report

Company Number: 12780331

Analysis Date: 2025-07-20 18:45 UTC

1. Credit Opinion: CONDITIONAL APPROVAL
   DC Compliance Services Limited demonstrates a solid net asset base and positive working capital as of the latest accounts. However, the company is a micro-entity with limited employees and no detailed profit and loss disclosure, restricting full visibility into profitability and cash generation. The steady growth in net assets and fixed assets suggests investment and expansion, but the sharp reduction in current assets and net current assets in the latest year warrants caution. Credit approval can be granted conditionally, subject to monitoring of cash flow trends and confirmation of ongoing operational performance.

2. Financial Strength:
   The company’s net assets have increased from £61k in 2020 to £241k in 2024, showing a steady strengthening of the balance sheet. Fixed assets have grown significantly, indicating capital investment. The net current assets remain positive at £4.1k, although this is a marked decline from £58.8k in the prior year. The share capital is minimal (£100), but shareholders’ funds reflect retained earnings or revaluation reserves. Overall, the company’s financial position is stable but concentrated in fixed assets, with limited liquidity.

3. Cash Flow Assessment:
   Current assets fell sharply from £77k to £8.4k in the latest year, while current liabilities decreased but remain material at £4.3k. The current ratio has tightened considerably, reducing short-term liquidity buffers. The lack of profit and loss data limits insight into operating cash flows, but working capital management appears to have become more constrained. The company should be monitored closely for cash flow sufficiency to meet obligations, especially given the micro-entity status and no reported employees.

4. Monitoring Points:

• Trends in current assets and liabilities, focusing on liquidity position and working capital cycles.
• Availability of cash or near-cash assets to meet short-term debt commitments.
• Any changes in business operations or asset composition impacting financial flexibility.
• Director’s disclosures or external information on profitability and revenue generation.
• Timely filing of future accounts and confirmation statements to ensure compliance and transparency.