DM FOCUS LISTS LIMITED

Executive Summary

DM Focus Lists Limited shows strong financial health with significant growth in cash and working capital over the past year, supported by prudent management and stable operations. The company’s current financial strength and liquidity position it well to meet credit obligations, warranting approval of credit facilities with routine monitoring of receivables and related party loans. No immediate credit risks are apparent based on the latest financial data and company status.

DM FOCUS LISTS LIMITED - Analysis Report

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.