DMT CONSULTANCY SERVICES LTD

Executive Summary

DMT Consultancy Services Ltd is a financially stable and growing IT consultancy with improving net assets and liquidity. The company demonstrates sound working capital management and no indications of financial distress. Credit facilities can be approved with routine monitoring of tax liabilities, debtor collections, and related-party transactions.

DMT CONSULTANCY SERVICES LTD - Analysis Report

Company Number: 14031260

Analysis Date: 2025-07-20 12:05 UTC

1. Credit Opinion: APPROVE
   DMT Consultancy Services Ltd demonstrates a positive financial trajectory, with net assets increasing from £6,896 in 2023 to £17,291 in 2024. The company maintains a healthy net current asset position (£14,665), indicating it can meet short-term obligations. No overdue filings or signs of financial distress are evident. The director holds full control, suggesting clear decision-making authority and accountability. The company’s consistent growth and manageable liabilities support approval for credit facilities, subject to standard monitoring.

2. Financial Strength:
   The balance sheet shows strengthening financial health. Net assets have nearly tripled over the last year. Tangible fixed assets increased, reflecting investment in operational capacity. Shareholders' funds are solely equity-based (£17,291), with no long-term liabilities reported. The increase in creditors is mainly due to taxation and social security costs, which is typical for a growing business. Overall, the company’s capital structure is sound with no apparent overleveraging.

3. Cash Flow Assessment:
   Cash at bank improved from £6,683 to £15,170, indicating enhanced liquidity. Debtors have increased proportionally with turnover, but remain within manageable limits. Current liabilities rose to £17,384 but are comfortably covered by current assets of £32,049, giving a current ratio above 1.8x, which is satisfactory for short-term liquidity. The company shows good working capital management and sufficient cash flow to service creditor demands and potential debt repayments.

4. Monitoring Points:

• Watch the increase in taxation and social security creditor balances to ensure timely settlement and avoid penalties.
• Monitor debtor collection periods to maintain cash flow stability as receivables grow.
• Keep an eye on the director’s account activity since it fluctuated between years; ensure no undue related-party exposure.
• Review future trading performance and profitability to confirm continued growth and cash generation.
• Confirm ongoing compliance with filing deadlines to avoid regulatory risk.