DSP MOTORS LIMITED

Executive Summary

DSP MOTORS LIMITED exhibits a solid financial position for a micro-entity with clear regulatory compliance and a growing net asset base. While the single-person ownership and limited public information warrant further investigation, there are no immediate solvency or liquidity concerns evident from the available data. Further due diligence on operational performance and director capacity is recommended to confirm long-term sustainability.

DSP MOTORS LIMITED - Analysis Report

Company Number: 12993100

Analysis Date: 2025-07-20 18:35 UTC

1. Risk Rating: LOW
   The company shows a positive net asset position with a growing net current asset base over the last three years. It maintains compliance with filing deadlines and demonstrates stable ownership and governance. Its micro-entity status and control by a single director who is also the sole significant controller suggest a straightforward, low-complexity operation with limited external financial risk.

2. Key Concerns:

• Single Director and Shareholder Control: The entire ownership and control rest with one individual, which may raise succession or governance risks.
• Minimal Share Capital: The company has only £1 share capital, indicating limited upfront equity investment, though this is not unusual for micro-entities.
• Limited Disclosure: As a micro-entity, detailed financial and operational data are minimal, restricting deeper insight into profitability, cash flows, or contingent liabilities.

3. Positive Indicators:

• Consistent Growth in Net Assets: The net assets increased from £350 in 2020 to £15,824 in 2023, indicating accumulation of retained earnings or capital injections.
• Strong Liquidity Position: Current assets exceed current liabilities substantially, with net current assets rising to £15,824 in the latest year, suggesting the company can meet short-term obligations.
• On-time Filing and Compliance: No overdue filings for annual accounts or confirmation statements demonstrate good governance and regulatory compliance.

4. Due Diligence Notes:

• Profitability and Cash Flow Analysis: Request profit and loss statements and cash flow data to evaluate operational sustainability beyond balance sheet strength.
• Director’s Background and Capacity: Given the single director/shareholder structure, assess the individual’s capacity to manage and grow the business and any potential conflicts of interest.
• Customer Base and Market Position: Investigate the company’s business model, client concentration, and competitive environment in motor vehicle maintenance to understand revenue stability.