DNB PROJECTS LTD

Executive Summary

DNB Projects Ltd shows a stable financial position with improving net assets, positive working capital, and strong cash liquidity, suitable for credit approval. The company’s short operational history warrants ongoing monitoring of turnover and cash flow performance. Overall, the financial stewardship appears sound, supporting its ability to service debt obligations.

DNB PROJECTS LTD - Analysis Report

Company Number: 14065780

Analysis Date: 2025-07-20 19:14 UTC

1. Credit Opinion: APPROVE
   DNB Projects Ltd is a newly incorporated private limited company (since April 2022) operating in management consultancy (SIC 70229). The financials for the year ending April 2024 show a positive net asset position with improving net current assets and shareholder funds. Despite its micro size and a sole director/shareholder, the company demonstrates sound financial stewardship with no overdue filings or signs of distress. The company’s cash reserves are healthy relative to current liabilities, indicating good short-term liquidity to meet debt obligations. Credit approval is recommended, subject to continued monitoring due to the company's short trading history.

2. Financial Strength:

• Net assets increased from £11,287 in 2023 to £15,566 in 2024, reflecting a strengthening balance sheet.
• Fixed assets are minimal (£1,392), typical for a consultancy with low capital expenditure requirements.
• Current assets (£64,254) exceed current liabilities (£49,767), resulting in net current assets of £14,487, which improves liquidity and working capital.
• Deferred tax liability reduced from £450 to £313, suggesting effective tax planning or changes in timing differences.
• Shareholder funds rose by £4,279, indicating retained earnings accumulation and profitability.

3. Cash Flow Assessment:

• Cash at bank increased from £39,351 to £45,066, a positive sign of cash generation and liquidity management.
• Debtors reduced slightly from £23,511 to £19,188, showing some improvement in receivables collection.
• Current liabilities decreased from £53,126 to £49,767, evidencing controlled payables and obligations.
• The company has a healthy cash-to-current liabilities ratio (~0.9), implying strong ability to cover short-term liabilities.
• Working capital remains positive and has improved year-on-year, indicating operational cash flow is sufficient to meet obligations.

4. Monitoring Points:

• Monitor turnover and profitability trends as detailed turnover figures are not disclosed but are critical for ongoing creditworthiness.
• Keep watch on debtor days and creditor payments to ensure working capital remains robust.
• Monitor any significant increases in liabilities or changes in deferred tax provisions.
• Given the sole director/shareholder structure, ensure no adverse director conduct or disqualification events arise.
• Review next accounts filing to confirm sustained growth and absence of emerging financial stress.