DJC CONSULTANCY LIMITED

Executive Summary

DJC CONSULTANCY LIMITED is currently in a financially distressed position with persistent negative net assets and poor liquidity, making it unsuitable for credit extension at this time. The company lacks operational scale and has significant short-term liabilities exceeding its assets, indicating a high risk of default. Close monitoring is recommended to detect any signs of financial recovery or worsening conditions.

DJC CONSULTANCY LIMITED - Analysis Report

Company Number: 13047199

Analysis Date: 2025-07-19 12:04 UTC

1. Credit Opinion: DECLINE
   DJC CONSULTANCY LIMITED shows persistent and deepening net liabilities over the last four years, with net assets deteriorating from -£5,074 in 2020 to -£23,273 in 2023. The company’s current liabilities significantly exceed its current assets, indicating poor short-term liquidity and inability to cover immediate debts. The absence of employees and minimal fixed assets adds to concerns about operational capacity and business scale. Without evidence of profitability, cash inflows, or external support, the company is currently not creditworthy for additional lending.

2. Financial Strength:
   The company is in a weak financial position with negative net assets and shareholders' funds increasing in deficit year-on-year. Current liabilities (creditors due within one year) increased substantially to £25,162 in 2023 while current assets remain below £600, resulting in negative working capital of £-24,652. The balance sheet shows no equity buffer and a small amount of fixed assets (£1,379), which are insufficient to offset liabilities. This financial structure indicates vulnerability to creditors and limited capacity to absorb financial shocks.

3. Cash Flow Assessment:
   The financial data implies ongoing cash flow difficulties as current liabilities far exceed current assets, suggesting the company struggles to meet short-term obligations. No reported cash or equivalents figures available, but the negative net current assets and increasing creditor balances strongly indicate liquidity constraints. The absence of employees might reduce operating expenses, but it also suggests limited operational activity generating cash inflows. Overall, the company’s cash flow position is fragile or negative.

4. Monitoring Points:

• Monitor future filings for improvements in net assets and working capital.
• Watch for changes in creditor balances and evidence of external financing or capital injections.
• Review any changes in director appointments or business strategy that might indicate turnaround efforts.
• Observe payment patterns to suppliers and tax authorities for signs of distress or overdue obligations.
• Keep an eye on the company’s trade activity and contract wins that could improve revenue and liquidity.