DC TRAINING SERVICES LTD

Executive Summary

DC Training Services Ltd is a micro-sized, early-stage business with positive but modest financial strength and improving liquidity. The company’s ability to service small credit facilities appears adequate, but limited scale and resources warrant cautious credit exposure and ongoing monitoring. Management control is clear and stable, supporting credit reliability at this stage.

DC TRAINING SERVICES LTD - Analysis Report

Company Number: 13248293

Analysis Date: 2025-07-20 18:25 UTC

1. Credit Opinion: CONDITIONAL APPROVAL
   DC Training Services Ltd is a micro private limited company with a short operating history since incorporation in 2021. The company shows a modest but positive net asset position (£593) as of the most recent accounts dated 31 March 2024, with improved net current assets compared to the prior year. However, the absolute scale of operations and financial resources are limited, indicating modest capacity to absorb shocks or sustain significant additional debt. The single director and sole shareholder appears to maintain control and oversight, but the company’s financial profile suggests credit facilities should be cautiously sized and potentially secured or subject to ongoing review.

2. Financial Strength
   The company’s balance sheet shows a small but positive net asset base of £593, up from £405 the previous year. Current assets improved from £188 to £2,279, primarily cash or equivalents, which helped reverse a prior year negative working capital position (-£695) to a current positive working capital of £593. Fixed assets remained constant at £1,100. The capital structure is minimal with £1 share capital and retained earnings reflected in shareholders’ funds. Overall, the financial strength is weak but improving, typical for a micro entity in early growth phases.

3. Cash Flow Assessment
   The increase in current assets, especially cash or bank balances, alongside reduction in current liabilities relative to assets, indicates improved liquidity and working capital management. The company currently maintains positive net current assets, which supports short-term debt servicing capability. However, absolute cash balances remain low, reflecting limited buffer for operational disruptions or large expenditure. The single-employee operation implies low fixed overhead costs, reducing liquidity strain. Cash flow monitoring is essential given the tight margins.

4. Monitoring Points

• Maintain and monitor net current assets to ensure continued positive working capital
• Track cash flow closely to avoid liquidity shortfalls, especially if expanding operations or incurring debt
• Monitor timely filings and compliance to avoid regulatory risks
• Observe management’s ability to sustain or grow revenue and build reserves beyond micro entity scale
• Watch for any changes in director control or significant shareholder structure that may impact governance or risk profile