Company Number: 13127355

Analysis Date: 2025-07-20 15:46 UTC

1. Risk Rating: MEDIUM
   DJM Removals Limited shows a notable turnaround in financial position in its latest year, moving from net liabilities to a positive net asset position. However, the company remains small with limited equity and reliance on finance lease obligations, which introduces some risk.

2. Key Concerns:

• Historic negative equity: The company recorded negative net assets in the first three years (2021-2023), indicating past solvency challenges which may have impacted operational stability or creditor confidence.
• Significant finance lease liabilities: The company has £16,634 of long-term finance lease obligations as of 2024, a sizeable liability relative to its net assets (£18,842), which may constrain cash flow flexibility.
• Single director and employee: Operational dependence on a sole director/employee (Mr. D. May) raises concerns about business continuity and management bandwidth.

3. Positive Indicators:

• Improved financial position in 2024: The company reported £18,842 net assets and positive net current assets (£15,756), reflecting increased tangible assets and cash balances.
• No overdue filings: Accounts and confirmation statements are filed on time, indicating good compliance and governance discipline.
• Clear accounting policies and transparency: The company adheres to FRS 102 Section 1A standards and discloses related party transactions and lease obligations clearly.

4. Due Diligence Notes:

• Investigate the nature and terms of the finance leases, including repayment schedules and potential impact on liquidity.
• Review the company’s cash flow forecasts and working capital management given prior years’ negative net current assets and liabilities.
• Assess client base, contracts, and revenue stability to understand operational sustainability given small scale and single-person management.
• Confirm that no director disqualifications or regulatory actions apply to Mr. D. May.
• Review turnover and profit trends (not disclosed here) to verify the robustness of the reported financial improvements.