DNM EXPRESS LTD

Executive Summary

DNM EXPRESS LTD is a micro-entity in the freight transport sector showing persistent negative equity and severe liquidity constraints, raising substantial solvency risks. While regulatory compliance is maintained and fixed assets present a potential value, the financial position and operational scale indicate heightened risk concerns requiring detailed financial and operational due diligence before investment consideration.

DNM EXPRESS LTD - Analysis Report

Company Number: 12649826

Analysis Date: 2025-07-20 17:19 UTC

1. Risk Rating: HIGH
   DNM EXPRESS LTD exhibits significant financial distress as evidenced by persistent negative net current assets and negative shareholders’ funds over multiple years. The company’s liabilities consistently exceed its assets, indicating solvency challenges.

2. Key Concerns:

• Solvency Risk: The company has negative total assets less current liabilities (£-7,002 as of 31/12/2023) and consistently negative shareholders’ funds, reflecting a net deficit position. This raises concerns regarding its ability to meet long-term obligations.
• Liquidity Concerns: Current liabilities (£483,943) vastly exceed current assets (£3,568), resulting in a large negative net working capital (£-480,375). This indicates potential cash flow difficulties in covering short-term debts.
• Operational Stability: The company has a very small workforce (average 3 employees) and minimal current assets, which combined with the financial profile may signal operational and scale limitations impacting sustainability.

3. Positive Indicators:

• Compliance: Filings are up to date with no overdue accounts or confirmation statements, indicating good regulatory compliance and governance discipline.
• Fixed Assets: The company holds a sizeable fixed asset base (£473,373), which may represent operational infrastructure or collateral value.
• Established Directorship: The current director has been in place since incorporation, providing continuity in management.

4. Due Diligence Notes:

• Investigate the nature and valuation of fixed assets to assess if they are realizable or encumbered.
• Review underlying causes of persistent losses and negative equity, including revenue trends and cost structure.
• Examine cash flow statements and creditor arrangements to understand liquidity management and any potential for restructuring or support.
• Confirm the ownership structure and any related party transactions given the dual significant control reported.
• Assess the business model viability in the freight transport sector considering current scale and financial distress.