DJC MOTORS LIMITED

Executive Summary

DJC Motors Limited, a recently incorporated micro-entity, currently exhibits high financial risk characterized by negative net assets and significant short-term liabilities. While compliance with statutory filings is maintained, the company's solvency and liquidity position raise immediate concerns requiring further investigation. Investors should seek additional financial and operational information before considering exposure.

DJC MOTORS LIMITED - Analysis Report

Company Number: 14628024

Analysis Date: 2025-07-20 11:13 UTC

1. Risk Rating: HIGH
   The company shows significant net current liabilities and net negative shareholders' funds shortly after incorporation, indicating severe solvency and liquidity concerns.

2. Key Concerns:

• Negative net current assets of £-16,223 and overall net liabilities of £-6,746 suggest inability to meet short-term obligations without additional financing.
• The company was incorporated in January 2023 and has only filed one set of accounts, limiting visibility on operational sustainability and cash flow.
• Both directors share equal control and hold significant ownership, which could pose governance risks if financial difficulties arise and no external oversight is evident.

3. Positive Indicators:

• The company is compliant with filing deadlines, having no overdue accounts or confirmation statements.
• Micro-entity filing exemptions have been appropriately applied, indicating adherence to reporting requirements.
• The business operates in a defined niche (maintenance and repair of motor vehicles), which can be a stable sector if managed well.

4. Due Diligence Notes:

• Investigate the nature and timing of the current liabilities causing the liquidity shortfall and whether these are supplier debts, loans, or other creditors.
• Review cash flow forecasts or management accounts since January 2024 to assess if the company has secured funding or improved working capital.
• Examine the background and financial standing of the directors and any related-party transactions given their dominant control.
• Assess customer base, contracts, or revenue streams to evaluate operational sustainability and growth prospects.
• Confirm no hidden contingent liabilities or regulatory compliance issues beyond what is publicly filed.