Company Number: 14551795

Analysis Date: 2025-07-29 18:12 UTC

1. Risk Rating: LOW
   DP Auto Electrics Limited presents a low risk profile based on the available data. The company is newly incorporated but shows positive net assets and liquidity with no overdue filings or indications of financial distress.

2. Key Concerns:

• Director Loan: There is an interest-free, unsecured director loan of £9,960 outstanding at year-end, which may indicate reliance on director funding rather than external finance.
• Taxation and Social Security Creditors: Current liabilities include £13,266 in taxation and social security, a relatively large portion of total creditors, which merits monitoring for timely settlement.
• Limited Financial History: Being incorporated in December 2022, the company has only one financial period reported, limiting trend analysis and long-term stability assessment.

3. Positive Indicators:

• Strong Liquidity Position: Cash balance of £34,186 against current liabilities of £13,745 provides comfortable short-term liquidity coverage.
• Positive Net Assets: Net assets of £32,146 reflect shareholder equity and indicate no immediate solvency concerns.
• Compliance and Governance: All statutory filings (accounts and confirmation statement) are up to date with no overdue filings or penalties recorded.

4. Due Diligence Notes:

• Review the nature and purpose of the director loan, including terms for repayment and any potential impact on cash flow or creditor claims.
• Monitor the company’s management of tax and social security liabilities to ensure no accumulation of unpaid obligations.
• Obtain turnover and profit data for the current and future periods to assess operational performance and sustainability.
• Confirm the director’s background and any associated entities to understand the governance environment and potential conflicts of interest.
• Evaluate the company’s client base and contract stability given the maintenance and repair sector’s competitive nature.