Company Number: 12674770

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

1. Risk Rating: HIGH

Justification: DMAP Spares Ltd exhibits persistent net liabilities and negative shareholders' funds over multiple reported years, indicating solvency concerns. The company has consistently reported net current liabilities and an erosion of net assets, compounded by reliance on director loans.

2. Key Concerns:

• Solvency Risk: The company shows negative net assets (£-4,053 as of 30 June 2024) and negative net current assets (£-1,442), reflecting liabilities exceeding assets and potential inability to meet obligations.
• Liquidity Issues: Current liabilities consistently surpass current assets, suggesting short-term cash flow challenges and risk of default on due payments.
• Financial Dependence on Director Loans: The director loan balance remains significant (£44,887) indicating external funding dependency rather than operational cash generation.

3. Positive Indicators:

• Compliance: The company is up to date with its filing obligations, with no overdue accounts or confirmation statements, indicating regulatory compliance and good governance on reporting.
• Stable Management: The same two directors have been in place since incorporation, suggesting stable leadership.
• Micro Entity Reporting: The company benefits from simplified reporting requirements that reduce administrative burden.

4. Due Diligence Notes:

• Investigate the nature and terms of the director loan, including repayment schedule and whether it is secured or convertible.
• Review cash flow statements or bank reconciliations (if available) to assess liquidity beyond balance sheet figures.
• Evaluate the company’s business model and revenue streams given zero reported employees and persistent losses.
• Confirm if there are any contingent liabilities or off-balance-sheet commitments not reflected in the accounts.
• Assess the potential for turnaround or restructuring plans disclosed in directors’ reports or other communications.