D.C.M BRICKWORK & BUILDING SERVICES LIMITED

Executive Summary

D.C.M Brickwork & Building Services Limited demonstrates administrative compliance but reveals liquidity and working capital challenges with negative net current assets and low equity. Growth in assets is offset by rising current liabilities, indicating cash flow strain. Credit approval should be conditional with close monitoring of liquidity metrics and tax liabilities to mitigate short-term financial risks.

D.C.M BRICKWORK & BUILDING SERVICES LIMITED - Analysis Report

Company Number: 12813890

Analysis Date: 2025-07-20 16:39 UTC

1. Credit Opinion: CONDITIONAL APPROVAL
   D.C.M Brickwork & Building Services Limited is a relatively young private limited company operating in domestic building construction. The company has consistently filed accounts and confirmation statements on time, indicating compliance and administrative discipline. However, the company shows persistent net current liabilities and very low shareholder funds, with net current assets negative for the last three years. This signals working capital constraints and potential liquidity risks. The company’s ability to meet short-term obligations depends on managing cash flows tightly and possibly relying on director funding or external credit. Approval for credit facilities could be considered but should be conditional on ongoing close monitoring of liquidity and possibly restrictive covenants to limit exposure.

2. Financial Strength:
   The balance sheet shows modest fixed assets (£3,413) and an increase in current assets to £43,912 in the latest year. However, current liabilities are higher at £46,033, resulting in negative net current assets of £2,121. Shareholders’ funds have increased from £554 in 2024 to £1,292 in 2025 but remain low. The company’s balance sheet is thinly capitalized with minimal equity buffer to absorb shocks. The increase in stocks and debtors indicates business growth, but the simultaneous rise in current liabilities suggests stretched short-term funding. The company’s capital structure is weak, limiting its financial resilience.

3. Cash Flow Assessment:
   Cash holdings are low (£5,753) relative to current liabilities (£46,033), indicating limited liquid reserves. Debtors have increased to £21,670, which may imply longer receivables collection periods or increased sales on credit. The working capital deficit and significant VAT and corporation tax liabilities (noted in creditors) highlight potential cash flow pressures. The company’s ability to service debt and meet operating expenses depends heavily on timely collection of receivables and management of payables. The director’s current account creditor balance (£4,670) may indicate reliance on director loans or deferred payments, which could be a liquidity patch but is not a sustainable long-term funding source.

4. Monitoring Points:

• Net current assets and liquidity position to ensure the working capital gap does not widen further
• Receivables aging and debtor collection efficiency
• Timeliness and settlement of tax liabilities (VAT and corporation tax)
• Director loans or related party funding levels as a sign of external support dependency
• Profitability trends once income statements are available, to assess operational cash generation
• Compliance with filing deadlines and any changes in director or ownership structure