DMK IMAGING LTD

Executive Summary

DMK IMAGING LTD is a financially sound, small private company with strong liquidity and growing equity. The balance sheet and cash flow position support a credit approval with standard monitoring of director loans and debtor management. No significant credit risks are identified at this stage.

DMK IMAGING LTD - Analysis Report

Company Number: 12546779

Analysis Date: 2025-07-19 12:23 UTC

1. Credit Opinion: APPROVE
   DMK IMAGING LTD demonstrates a solid financial position with consistently growing net assets and positive working capital. The company shows strong liquidity with a large cash balance relative to current liabilities. No adverse director conduct or overdue filings are noted. The company’s ability to meet short-term obligations and maintain equity growth supports credit approval for standard lending facilities.

2. Financial Strength:
   The company’s net assets increased from £267k in 2023 to £369k in 2024, reflecting retained earnings growth (£368,982 profit and loss reserve). Share capital remains minimal (£100), consistent with a small private company. Current assets increased to £448k driven by cash (£360k) and debtors (£89k), while current liabilities rose moderately to £79k, primarily loans from directors (£44k) and tax liabilities. Overall, the balance sheet is healthy with net current assets (working capital) of £369k, indicating good financial resilience and no reliance on external borrowings.

3. Cash Flow Assessment:
   Cash at bank is robust at £359,596, covering current liabilities more than fourfold, signaling excellent liquidity and immediate cash availability for debt servicing or operational needs. Debtors have increased, suggesting growing business activity but remain manageable. The loans from directors are a notable short-term liability but do not indicate external financial strain. Working capital is strong, and no overdraft or external creditors are evident, which reduces liquidity risk.

4. Monitoring Points:

• Director loans: Monitor repayment or conversion to equity to reduce short-term liabilities and potential related party risk.
• Debtor collection efficiency: Maintain or improve debtor turnover to preserve cash flow strength.
• Profit sustainability: Continue tracking profit and loss reserve growth to ensure ongoing capital accumulation.
• Tax liabilities: Ensure timely settlement of tax and social security obligations to avoid penalties.