Company Number: 13215959

Analysis Date: 2025-07-29 15:05 UTC

1. Credit Opinion: APPROVE
   DM Focus Lists Limited demonstrates solid liquidity and a robust equity base with no overdue filings or director issues. The company’s net current assets increased substantially from £153.8k in 2022 to £314.5k in 2023, reflecting improved working capital management and cash generation. The director’s continued involvement and absence of adverse conduct support sound management stewardship. The presence of an interest-free loan from a related party is noted but manageable given the company's strong cash position. Overall, the company appears capable of servicing new credit facilities.

2. Financial Strength:
   The company’s balance sheet shows healthy growth, with shareholders’ funds increasing from £153.8k to £314.5k over one year, indicating retained earnings accumulation and profitability. Current assets have grown by 50% to £482.7k, driven primarily by cash increasing from £174.3k to £342.1k, while current liabilities remained stable around £168k. No long-term liabilities or fixed assets are recorded, which is typical for a service-oriented SME. The strong net current assets position signals low financial risk and a solid equity buffer.

3. Cash Flow Assessment:
   Cash on hand more than doubled in the latest financial year, supporting excellent liquidity and ability to meet short-term obligations. Debtors remained stable, indicating consistent revenue collection practices, and trade creditors decreased, improving the working capital cycle. The net current assets of £314.5k provide significant headroom above current liabilities, demonstrating good liquidity. The interest-free related party loan of £100k is repayable on demand but does not appear to pressure cash flows given the available cash reserves.

4. Monitoring Points:

• Maintain vigilance on trade debtor aging to ensure continued strong cash conversion, especially with £140k outstanding.
• Monitor the related party loan for any changes in repayment terms or demand for repayment that could impact liquidity.
• Watch for any increase in current liabilities which could strain working capital.
• Assess future profit retention and cash flow trends for sustained creditworthiness, especially as the company grows.
• Confirm timely filings continue to avoid regulatory penalties.