Company Number: 14720670

Analysis Date: 2025-07-20 15:48 UTC

1. Credit Opinion: CONDITIONAL APPROVAL
   DJT HEATING SERVICES LTD is a newly incorporated private limited company (March 2023) operating in the plumbing, heating, and air-conditioning installation sector. The company filed its first set of accounts for the year ending March 2024, showing a modest net asset base and positive working capital. While the company demonstrates initial financial stability and no overdue filings, the limited operating history and small scale of operations warrant a cautious credit stance. Approval is conditional upon continued timely filing, stable cash flow generation, and monitoring of tax liabilities.

2. Financial Strength:
   The balance sheet at 31 March 2024 shows fixed assets of £268, negligible in scale, indicating limited capital investment so far. Current assets total £13,365 comprising £12,090 cash and £1,275 debtors, supporting operational liquidity. Current liabilities amount to £8,104, including £3,740 corporation tax payable, reflecting a tax burden to be managed. Non-current liabilities are £1,616, leading to net assets of £3,912. Shareholders’ funds equal net assets, showing no external equity or debt financing beyond minimal liabilities. Overall, financial strength is modest but positive for a start-up, with working capital of £5,260 indicating short-term solvency.

3. Cash Flow Assessment:
   Cash on hand of £12,090 relative to current liabilities of £8,104 suggests adequate liquidity to cover short-term obligations. Positive net current assets indicate sound working capital management. However, the presence of corporation tax payable suggests the company has generated taxable profits but needs to ensure timely tax payments to avoid penalties. The small absolute values and limited asset base imply cash flow is likely tight and dependent on ongoing operational turnover and receivables collection. Monitoring cash flow trends and timely payment of tax and creditors is critical.

4. Monitoring Points:

• Ensure continued timely submission of annual accounts and confirmation statements.
• Track growth in turnover and profitability to build retained earnings and equity base.
• Monitor liquidity ratios and cash flow from operations closely to detect any emerging funding gaps.
• Watch corporation tax payments to ensure compliance and avoid cash flow strain.
• Review any increase in borrowing or liabilities that may affect solvency.
• Management stability and governance as the company expands.