Company Number: 12689049

Analysis Date: 2025-07-29 12:20 UTC

1. Credit Opinion: CONDITIONAL APPROVAL. DKMB LIMITED is a micro-entity private limited company with limited financial history but showing a significant improvement in net assets as of the 2024 year-end. The recent acquisition of fixed assets valued at £198,000 indicates capital investment and potential growth. However, the company has a substantial current liability of £113,600 against current assets of £24,682, resulting in negative net current assets of £88,918. This working capital deficit signals liquidity risk and the need for close monitoring. The appointment of a new director with full share and voting control as of late 2024 suggests a change in management control, which may impact company strategy and credit risk. Approval is recommended with conditions including periodic review of liquidity, cash flow, and management performance.

2. Financial Strength: The balance sheet shows a strong increase in net assets from £49 in 2023 to £109,082 in 2024, largely driven by the addition of fixed assets. The fixed asset base provides collateral strength, but the micro classification and limited equity base (share capital £200) constrain financial flexibility. The large current liabilities raise concerns about short-term solvency despite the positive net assets figure. There are no provisions or long-term creditors reported, which simplifies the liability structure. Overall, the financial strength is modest, supported by asset investment but weakened by working capital imbalance.

3. Cash Flow Assessment: Current assets of £24,682 include cash and short-term receivables but are insufficient to cover current liabilities of £113,600, resulting in negative net current assets of £88,918. This suggests the company may face challenges meeting short-term obligations without additional financing or improved cash collections. The lack of detailed cash flow statements limits full assessment, but the working capital deficit is a key risk indicator. The company employs one person on average, implying limited operational scale. Monitoring cash flow statements and payment patterns will be critical to ensure ongoing liquidity.

4. Monitoring Points:

• Working capital trends: focus on reducing current liabilities or increasing current assets to improve liquidity.
• Cash flow generation: timely receipt of receivables and control of payables.
• Management changes: impact of new director Lee Archer’s control on company strategy and financial discipline.
• Asset utilization: effectiveness of fixed asset investments in generating revenue and profit.
• Compliance with filing deadlines and regulatory requirements to avoid penalties or reputational risk.