DOMS 360 CONSTRUCTIONS LTD

Executive Summary

Doms 360 Constructions Ltd is a small, newly established company with a positive but modest financial position. It demonstrates adequate liquidity and net assets, supported by director funding. Credit approval is recommended on a conditional basis, requiring further evidence of sustainable cash flow and revenue growth. Close monitoring of working capital and director loans is advised as the business develops.

DOMS 360 CONSTRUCTIONS LTD - Analysis Report

Company Number: 14402427

Analysis Date: 2025-07-20 11:15 UTC

1. Credit Opinion: CONDITIONAL APPROVAL
   Doms 360 Constructions Ltd is a recently incorporated private limited company specializing in renting and leasing construction machinery. The financials show modest but positive net assets (£6,043) and net current assets (£3,841) with no overdue filings, indicating compliance and basic financial stability. However, the company is in its early stages (incorporated in 2022) with a very small scale of operations (one employee) and limited turnover data. The director has advanced and subsequently repaid significant amounts, suggesting reliance on director funding. Credit approval should be conditional on obtaining more detailed cash flow forecasts, evidence of sustainable revenue generation, and monitoring of working capital and debtor collections.

2. Financial Strength
   The balance sheet reveals fixed tangible assets of £2,718, current assets of £10,562 (mainly cash £9,062 and debtors £1,500), and current liabilities of £6,721. Shareholders’ funds stand at £6,043, showing a positive equity base, albeit small. The company’s net current assets are positive (£3,841), indicating sufficient short-term liquidity to cover liabilities. The presence of deferred tax provisions (£516) is noted but modest in scale. The company’s financial strength is adequate for its size but limited in absolute magnitude due to its infancy and small scale.

3. Cash Flow Assessment
   Cash position has improved significantly from £100 at the prior year end to £9,062, suggesting recent inflows or director funding. The company repaid £5,846 to the director during the year, indicating some cash flow management but also dependence on director loans (current director’s account creditor of £5,606). Trade debtors are low (£1,350), which could limit working capital strain, but overall cash flow visibility is limited without profit and loss data. Working capital management appears sound currently but should be closely monitored as business grows.

4. Monitoring Points

• Turnover and profitability trends as the company matures to ensure sustainable revenue streams.
• Director loans and repayments to assess reliance on related party funding.
• Debtor aging and collection efficiency to maintain positive working capital.
• Liquidity ratios (current ratio, quick ratio) to ensure ongoing ability to meet short-term liabilities.
• Timely filing of future accounts and confirmation statements to maintain compliance.
• Impact of deferred tax liabilities on future cash outflows.