DPM NEW BUILDS LTD

Executive Summary

DPM NEW BUILDS LTD currently demonstrates a high risk profile driven by negative equity and working capital deficiency, which could impair its ability to meet liabilities. Despite compliance with filing requirements and stable directorship, the limited financial disclosures and lack of operational scale warrant caution. Further investigation into cash flows, business viability, and related party arrangements is recommended before considering investment.

DPM NEW BUILDS LTD - Analysis Report

Company Number: 13326708

Analysis Date: 2025-07-29 20:20 UTC

1. Risk Rating: HIGH
   The company exhibits a negative shareholders' fund position (£-3,476) combined with current liabilities slightly exceeding current assets (£304,973 vs £307,799), indicating potential solvency and liquidity challenges. The absence of employees and minimal share capital (£60) further suggest limited operational scale and financial buffer.

2. Key Concerns:

• Negative Net Worth: Shareholders’ funds are negative, implying accumulated losses or liabilities in excess of assets, raising solvency concerns.
• Working Capital Deficiency: Current liabilities exceed current assets, indicating possible liquidity stress and risk in meeting short-term obligations.
• No Audit or Detailed Financial Disclosures: Being a micro-entity, the company has minimal filing requirements and unaudited accounts, limiting transparency into financial health and operational viability.

3. Positive Indicators:

• Filing Compliance: Both accounts and confirmation statements are up to date with no overdue filings, demonstrating regulatory compliance.
• Stable Directorship: The founding directors remain actively involved, with no disqualifications evident, suggesting stable governance at the board level.
• Industry Focus: The company operates in development of building projects (SIC 41100), a sector with potential for growth assuming adequate capital and project pipeline.

4. Due Diligence Notes:

• Review detailed cash flow information and any off-balance sheet liabilities to assess true liquidity and solvency position.
• Investigate the cause of negative equity and whether losses are expected to continue.
• Clarify business model and revenue generation since no employees are recorded and the company is relatively new (incorporated 2021).
• Confirm relationship and financial interdependence among related parties given multiple directors and PSCs with shared addresses and voting control.
• Assess any contingent liabilities or pending legal matters not disclosed in micro-entity accounts.