DXM PROJECTS LTD

Executive Summary

DXM Projects Ltd is a very small company with a modest but positive working capital position. Financials show some decline in net assets and liquidity, warranting a cautious credit approach with conditions on monitoring cash flow and updated reporting. The business currently appears viable but limited in scale and financial resilience.

DXM PROJECTS LTD - Analysis Report

Company Number: 13790236

Analysis Date: 2025-07-20 15:31 UTC

1. Credit Opinion: CONDITIONAL APPROVAL
   DXM Projects Ltd demonstrates a positive net asset position and maintains net current assets, indicating some working capital buffer. However, the company is very small (micro-entity) with minimal assets and limited financial history (incorporated late 2021). The decline in net assets from £2,683 in 2022 to £1,595 in 2023 and a sharp drop in current assets suggests some financial strain or reduced liquidity. Given these factors and the single director/shareholder structure, credit facilities could be extended but with conditions such as monitoring cash flow closely and requiring updated financials to confirm stability.

2. Financial Strength:
   The company is micro-sized with total net assets of £1,595 at the last balance sheet date. Net current assets remain positive at £2,195, providing a modest cushion against short-term liabilities. The reduction in net assets over the year indicates some erosion of equity, possibly from operational losses or withdrawals. No long-term liabilities are reported, which reduces financial risk. Overall, the balance sheet is stable but very thin, reflecting limited capitalization and scale.

3. Cash Flow Assessment:
   Current liabilities fell significantly from £4,122 in 2022 to £255 in 2023, improving short-term solvency. However, current assets also declined sharply from £7,164 to £1,940, which may indicate cash being used to cover expenses or reduced receivables/inventory. The net current asset position remains positive, but the low absolute cash and asset base limits liquidity flexibility. With only one employee (the director), fixed overheads are likely low, but ongoing cash generation should be verified before credit extension.

4. Monitoring Points:

• Track quarterly cash flow statements and bank balances to ensure liquidity is maintained.
• Monitor any changes in director/shareholder structure or PSC control.
• Review updated annual accounts and confirmation statements promptly.
• Watch for further declines in net assets or recurring losses.
• Assess business pipeline and contracts to confirm revenue sustainability.