DJC INVESTMENTS LIMITED

Executive Summary

DJC Investments Limited shows a recovering financial position driven by significant investments and reduction of intercompany liabilities, yet it remains a young entity with limited operating history and tight liquidity. Conditional credit approval is advised, with emphasis on monitoring cash flow, related party transactions, and overall financial performance. Careful oversight will be crucial to ensuring the company’s capacity to meet credit obligations sustainably.

DJC INVESTMENTS LIMITED - Analysis Report

Company Number: SC678666

Analysis Date: 2025-07-20 13:31 UTC

1. Credit Opinion: CONDITIONAL APPROVAL
   DJC Investments Limited shows a notable improvement in financial position from the prior years, primarily due to significant reduction of intercompany liabilities and recognition of investments. However, the company is relatively young (incorporated 2020) and has limited trading activity or operating cash flow history, which introduces some uncertainty. The presence of sizable amounts owed to group undertakings in prior years has decreased markedly but remains a consideration. Approval is recommended with conditions: close monitoring of liquidity and intercompany balances, and verification of sustainable operating cash flows before extending substantial credit facilities.

2. Financial Strength
   The balance sheet at 31 December 2023 indicates total assets less current liabilities of £180,678, a significant increase from £35,201 in the previous year. This improvement is largely due to the recognition of a fixed asset investment of £180,053, which appears to be shares in a group undertaking. Current assets stand at £5,659 against current liabilities of £5,034, giving a modest positive net working capital of £625. Shareholders’ funds have increased to £180,678, reflecting retained earnings growth. The company carries no long-term debt disclosed, improving solvency. However, the company's very low cash balance (£408) and dependence on related party balances warrant caution.

3. Cash Flow Assessment
   Cash at bank has dropped sharply from £6,000 in 2022 to £408 in 2023, indicating limited liquid resources. Debtors increased to £5,251, which may suggest some receivables risk or delayed cash conversion. Current liabilities are well covered by current assets but only marginally, with net current assets of just £625. The prior years showed significant current liabilities owed to group undertakings (£148,453 in 2022), which have substantially reduced to £1,434. These intercompany debts had no fixed repayment terms or interest. Cash flow from operations is not disclosed, but the low cash and working capital position imply tight liquidity. The company should be monitored for its cash collection and operational cash generation ability.

4. Monitoring Points

• Liquidity trends, especially cash balances and debtor collection periods.
• Intercompany balances and any changes in related party transactions.
• Operating performance and cash flow generation to support debt servicing.
• Any changes in fixed asset investment value or impairments.
• Director’s conduct or any governance issues given single director structure.
• Timeliness and completeness of statutory filings to avoid regulatory risks.