DGK FINANCIAL LIMITED

Executive Summary

DGK Financial Limited presents a solid financial foundation with positive profitability and a strong liquidity position in its inaugural year. The company’s simple capital structure and prudent expense control support its ability to meet short-term obligations. Continued monitoring is advised as the business scales and establishes longer operating history.

DGK FINANCIAL LIMITED - Analysis Report

Company Number: 15031752

Analysis Date: 2025-07-29 20:33 UTC

1. Credit Opinion: APPROVE
   DGK Financial Limited demonstrates a positive net asset position and profitability in its first full accounting period. The company is active, compliant with filing deadlines, and led by a single director with full ownership and control, suggesting clear accountability. The modest turnover and strong working capital indicate that the company can service short-term obligations. Given these factors and its micro-entity status, the credit risk is low at this stage.

2. Financial Strength:
   The balance sheet shows net assets of £28,933, all financed by shareholders' funds, reflecting no external debt. Current assets of £37,160 exceed current liabilities of £8,228, resulting in a healthy net current asset position of £28,932. The absence of fixed assets suggests a service-oriented business model with low capital intensity. Profit after tax of £30,933 indicates the company is generating positive earnings relative to its size.

3. Cash Flow Assessment:
   Current assets are sufficient to cover current liabilities nearly 4.5 times over, indicating strong liquidity. The company has only one employee, keeping staff costs manageable (£36,924). No mention of off-balance sheet liabilities reduces risk of hidden obligations. However, detailed cash flow statements are unavailable; caution warranted as the company is very new and cash flow volatility might arise in early years.

4. Monitoring Points:

• Maintain scrutiny on turnover growth and profit margins to ensure sustainable operations beyond the startup phase.
• Monitor liquidity ratios and any emerging liabilities as the company expands.
• Watch for director changes or ownership shifts that may affect governance and financial stewardship.
• Keep an eye on tax liabilities given a notable tax charge (£7,266) relative to profit, to avoid surprises.
• Review filings regularly to confirm continued compliance and timely submission of accounts.