DG HV JOINTING SERVICES LTD

Executive Summary

DG HV JOINTING SERVICES LTD is a newly formed private limited company with weak liquidity and solvency metrics evidenced by negative working capital and minimal net assets. The business relies heavily on director loans, increasing financial risk. However, timely filings and niche industry focus offer some positive governance and operational potential. Further due diligence on cash flows, director funding, and operational viability is warranted before investment consideration.

DG HV JOINTING SERVICES LTD - Analysis Report

Company Number: 14962148

Analysis Date: 2025-07-20 17:49 UTC

1. Risk Rating: HIGH
   The company shows a very weak financial position with net current liabilities and negligible net assets. The presence of director loans as a major debtor without repayment terms further increases risk. The company is newly incorporated with only one year of financial data, limiting evidence of operational stability.

2. Key Concerns:

• Negative working capital (net current assets of -£764) indicates potential liquidity issues to meet short-term obligations.
• Net assets of only £1 and total assets less current liabilities of £181 suggest minimal financial buffer and solvency risk.
• Director loan of £4,911 as unsecured, interest-free, and repayable on demand raises concerns about the company's reliance on insider funding rather than external financing or operational cash flow.

3. Positive Indicators:

• The company has filed its accounts and confirmation statements on time, indicating regulatory compliance and good governance practices thus far.
• The business operates in a specialized manufacturing sector (lifting and handling equipment), which may have niche market potential.
• Sole director and 100% shareholder alignment may facilitate agile decision-making.

4. Due Diligence Notes:

• Investigate the nature and collectability of the director loan and any plans for its repayment or conversion to equity.
• Review cash flow projections and contracts to assess the company's ability to generate positive operating cash flows and improve liquidity.
• Obtain detailed operational data, including turnover and profitability, since these were not disclosed in the accounts (exempt from filing profit and loss).
• Confirm any contingent liabilities or off-balance-sheet obligations not reflected in current accounts.
• Assess management experience and strategy given the company's recent incorporation and name change.