Company Number: 14672101

Analysis Date: 2025-07-20 11:16 UTC

1. Risk Rating: MEDIUM
   While DJH Kent Ltd is currently active and compliant with filing deadlines, the financial data indicates tight working capital and minimal net assets, which elevates short-term solvency risk. The company’s very recent incorporation (2023) and small scale add to operational uncertainty.

2. Key Concerns:

• Low Net Assets and Working Capital: Net current assets have decreased from £2,125 in 2024 to only £479 in 2025, indicating a narrowing liquidity buffer to cover short-term liabilities.
• High Trade and Tax Creditors: The company’s current liabilities (~£15,217 in 2025) are significant relative to current assets (£15,696), with a large portion apparently tax and social security related (~£15,443). This concentration could pose cash flow strain if payments are delayed or liabilities increase.
• Limited Operational Scale: The company employs only one director and had an average of one employee reported. The small scale and short operating history limit the ability to absorb shocks or scale operations quickly.

3. Positive Indicators:

• Filing Compliance: All accounts and confirmation statements are filed on time, indicating good regulatory discipline.
• Positive Net Assets and Shareholder Funds: Although small, net assets and shareholder funds remain positive, indicating no immediate insolvency.
• Ownership and Control: The sole director and 75-100% shareholder alignment reduces governance complexity and potential internal conflict.

4. Due Diligence Notes:

• Review cash flow statements and management accounts (not provided) to assess actual liquidity trends beyond year-end snapshots.
• Investigate the nature and timing of tax and social security liabilities to confirm no arrears or penalties that could trigger enforcement action.
• Understand business model and revenue streams given the SIC code 43210 (Electrical installation), including customer concentration and contract terms.
• Confirm any related party transactions or director loans that may impact financial stability.
• Assess director’s operational experience and capacity to manage growth or unforeseen challenges.