DJP TECHNICAL LIMITED

Executive Summary

DJP Technical Limited is a micro private limited company exhibiting improving liquidity and solvency metrics with timely compliance filings. The company is small-scale with a single director and employee, funded in part by a substantial director loan. While no immediate financial risks are evident, further review of director financing arrangements and operational sustainability is recommended to confirm long-term stability.

DJP TECHNICAL LIMITED - Analysis Report

Company Number: 12531778

Analysis Date: 2025-07-29 14:13 UTC

1. Risk Rating: LOW
   The company demonstrates a stable and improving financial position with positive net current assets and shareholder funds increasing significantly in the latest year. There are no overdue filings or indications of financial distress.

2. Key Concerns:

• Director’s loan account balance has increased substantially (£52,817 at year end), which may indicate reliance on director funding rather than external financing.
• Limited scale of operations indicated by a single employee and micro-entity status, potentially exposing the business to operational risks if key personnel are unavailable.
• Absence of an audit and limited public financial disclosures may limit transparency for external investors.

3. Positive Indicators:

• Consistent filing of accounts and confirmation statements on time reflecting good regulatory compliance.
• Steady growth in current assets and net current assets, with net current assets increasing from £1,901 in 2023 to £21,762 in 2024, indicating improving liquidity.
• Shareholders’ funds have increased commensurately, suggesting retained earnings or capital injections strengthening the balance sheet.
• Sole director and controlling shareholder is clearly identified, simplifying governance and decision-making structures.

4. Due Diligence Notes:

• Review the nature and terms of the director’s loan to assess whether it is sustainable and properly documented.
• Obtain management accounts and cash flow projections to confirm ongoing liquidity and operational viability beyond year-end snapshot.
• Examine client base, contract pipeline, and revenue trends to assess business sustainability given the small scale and single employee status.
• Confirm there are no contingent liabilities or pending legal/regulatory issues not disclosed in the filings.
• Verify the reasonableness of the accounting policies and any related party transactions given the significant director financing.