Company Number: NI684172

Analysis Date: 2025-07-20 15:16 UTC

1. Risk Rating: LOW
   DJCP Construction Limited demonstrates solid financial metrics with improving net assets and positive working capital. The company is not overdue on filings, has a single experienced director, and shows no signs of insolvency or governance issues.

2. Key Concerns:

• High Stock Levels: Stock has increased markedly from £200,000 to £450,000, representing a substantial portion of current assets. This may indicate potential inventory risk or slow turnover.
• Limited Liquidity in Cash: Despite strong net current assets, cash on hand remains low (£12,864), suggesting reliance on stock and debtors to meet short-term obligations.
• No Employees Reported: The accounts note zero employees, which raises questions about operational scalability or reliance on subcontractors, potentially impacting sustainable business operations.

3. Positive Indicators:

• Consistent Profitability: The company reported profits before tax of approximately £98k in 2024, reflecting operational stability and growth from previous years.
• Increasing Net Assets and Shareholder Funds: Net assets nearly doubled from £108k in 2023 to £207k in 2024, showing strengthened financial position and capital retention.
• Compliance and Timely Filings: All statutory accounts and confirmation statements are filed on time, indicating good governance and regulatory compliance.
• Director Control & Stability: Single director Mr. Declan Joseph Porter holds significant control and has no adverse records, supporting consistent leadership.

4. Due Diligence Notes:

• Investigate the nature and turnover rate of the increased stock level to assess inventory risk.
• Review cash flow statements and supplier payment terms to verify liquidity sufficiency beyond balance sheet snapshot.
• Clarify operational model given zero employees reported—understand subcontractor usage or outsourcing arrangements.
• Confirm the valuation and composition of intangible assets (£30,000) to ensure appropriate recognition.
• Assess any contingent liabilities or off-balance-sheet arrangements not disclosed.