DCG CONTRACTS NOTTINGHAM LIMITED

Executive Summary

DCG CONTRACTS NOTTINGHAM LIMITED is a micro-entity newly incorporated with negative net assets and reliance on director loans, showing no operational revenues or employees. The company’s weak financial position and poor liquidity do not support an extension of credit at this time. Ongoing monitoring of financial performance and cash flow improvement is essential before reconsidering credit facilities.

DCG CONTRACTS NOTTINGHAM LIMITED - Analysis Report

Company Number: 14402912

Analysis Date: 2025-07-20 14:00 UTC

1. Credit Opinion: DECLINE
   DCG CONTRACTS NOTTINGHAM LIMITED is a recently incorporated micro-entity (since October 2022) with very limited financial history. Its latest accounts as of 31 October 2023 show net current liabilities of £1,854 and overall net liabilities of the same amount. The company exhibits negative net assets and relies on director loans (£10,269 interest-free and repayable on demand) to fund operations. Absence of revenue or profit data and no employees indicate the business is either pre-revenue or inactive operationally. This weak financial position and lack of trading history do not support a credit facility at this stage.

2. Financial Strength:
   The balance sheet reveals a fragile financial structure. Current assets total £11,240, offset by current liabilities of £13,094, resulting in negative working capital. The net liabilities of £1,854 reflect a capital deficit. Director loans form a significant portion of liabilities, indicating dependence on shareholder funding. No fixed assets or tangible collateral are visible, increasing risk. The company’s micro status and exemption from audit limit financial transparency.

3. Cash Flow Assessment:
   With no employees and no disclosed revenue or profit, cash flow appears minimal or non-existent. Reliance on director loans suggests an absence of operating cash inflows. Negative working capital highlights potential liquidity constraints. The interest-free, on-demand director loans provide some short-term liquidity buffer but are not a sustainable source of cash flow to cover external debt obligations. Overall, liquidity is weak and insufficient for servicing third-party credit.

4. Monitoring Points:

• Filing of next full accounts and confirmation of trading activity and revenue generation.
• Changes in net current assets and net liabilities to assess improvement in financial health.
• Reduction or repayment of director loans indicating movement toward independent funding.
• Evidence of profitable operations or positive cash flow in future periods.
• Any new fixed assets or collateral that could support lending.
• Compliance with filing deadlines to ensure regulatory and operational transparency.