DCMC GEO LIMITED

Executive Summary

DCMC Geo Limited exhibits a markedly weakened financial position with near-zero net assets and negative working capital in the latest fiscal year, undermining its capacity to service credit effectively. The sharp decline in liquidity and equity from prior years, combined with minimal capital and single director control, leads to a credit decline recommendation. Close monitoring of cash flow and compliance is advised if circumstances change.

DCMC GEO LIMITED - Analysis Report

Company Number: 12828225

Analysis Date: 2025-07-20 14:50 UTC

1. Credit Opinion: DECLINE
   DCMC Geo Limited’s financial profile raises significant concerns regarding its ability to service debt or meet short-term obligations. The company’s net current liabilities position in the latest year (-£86) and an almost negligible net asset base of £1 indicate weak financial strength. The dramatic deterioration from a net asset position of £22,268 in 2023 to near insolvency in 2024 suggests acute liquidity stress or write-downs. This volatility undermines confidence in ongoing financial stewardship and business sustainability. Given the minimal share capital (£1) and a sole director with full control, the risk concentration is high. Without clear evidence of imminent turnaround or external support, credit extension is not advisable.

2. Financial Strength:
   The balance sheet shows a sharp decline in current assets from £39,503 in 2023 to £12,647 in 2024, while current liabilities remain relatively high (£12,733). Fixed assets are negligible (£999) and unchanged materially. The company’s net current assets moved from a healthy £21,406 surplus to a slight deficit, eroding total net assets to £1. This signals either increased payables, reduced receivables, or impaired asset values. The lack of retained earnings or reserves further limits financial resilience. The company remains a micro-entity with minimal capital but has seen a troubling downward trend in liquidity and equity.

3. Cash Flow Assessment:
   Current liabilities slightly exceed current assets, creating a working capital deficiency. This suggests potential difficulty in meeting short-term liabilities without external financing or asset liquidation. No cash flow statement is provided but the balance sheet indicates strained liquidity. The company’s one-employee structure and micro-entity status imply limited operating scale and cash inflows. The presence of accruals and deferred income near equal to the net asset value (£912) also hints at timing mismatches in cash flows. Overall, liquidity is tight and could impair operational continuity under stress.

4. Monitoring Points:

• Monitor quarterly cash flow and working capital trends closely to detect further liquidity deterioration.
• Watch for any late filings or overdue accounts that may signal operational or compliance issues.
• Assess any changes in director control or capital injections that might improve financial standing.
• Review trade creditor aging and payment practices to identify potential creditor pressure.
• Track industry conditions in the engineering sector (SIC 71129) for external risk factors.