Company Number: 13055108

Analysis Date: 2025-07-20 13:03 UTC

1. Risk Rating: MEDIUM
   Justification: The company is active, compliant with filing deadlines, and holds positive net assets, but the substantial decline in net current assets and net assets in the latest financial year raises concerns over solvency and liquidity.

2. Key Concerns:

• Significant deterioration of net current assets from £7,186 at 2023 year-end to only £97 at 2024 year-end, indicating potential liquidity strain.
• Net assets have similarly decreased from £7,186 in 2023 to £97 in 2024, suggesting erosion of shareholders’ equity and possible financial stress.
• Very small share capital (£1) and sole director/shareholder structure may limit financial resilience and governance oversight.

3. Positive Indicators:

• The company is up to date with all statutory filings (accounts and confirmation statements), indicating regulatory compliance and good governance practices.
• Cash balance, while reduced, remains positive at £10,159 as of 2024, providing some immediate liquidity buffer.
• The business operates in a relatively low fixed asset environment (no reported fixed assets), reducing capital expenditure burden and associated risks.

4. Due Diligence Notes:

• Investigate reasons for the sharp decline in net current assets and net assets in the 2024 financial year—whether due to increased liabilities, reduced revenues, or other operational factors.
• Review the company’s cash flow statements and forecasts to assess ongoing liquidity and ability to meet short-term obligations.
• Assess the creditworthiness and reliability of debtors (£5,916) to determine collectability and impact on working capital.
• Confirm if there are any contingent liabilities, off-balance sheet obligations, or related party transactions that may affect financial stability.
• Evaluate the director’s capacity and plans for recapitalization or turnaround given the sole control and minimal equity base.

Executive Summary:
DMCQE Ltd is an active private limited company compliant with all filing requirements but has experienced a marked decline in net assets and working capital in the latest reported year. While immediate liquidity remains positive, the erosion of equity and minimal share capital present medium-term solvency risks. Further analysis of cash flows, debtor quality, and operational performance is recommended to fully understand the company’s financial health.