DYNAMIC PROPERTY SERVICES LIMITED

Executive Summary

Dynamic Property Services Limited is a newly incorporated micro entity with minimal net assets and limited financial history. Its credit worthiness is currently constrained by modest liquidity and reliance on director funding. Conditional credit approval is recommended with close monitoring of cash flows and operational performance to mitigate early-stage business risks.

DYNAMIC PROPERTY SERVICES LIMITED - Analysis Report

Company Number: 14517575

Analysis Date: 2025-07-20 17:18 UTC

1. Credit Opinion: CONDITIONAL APPROVAL
   Dynamic Property Services Limited is an active micro-sized private limited company incorporated recently in December 2022. The company shows a positive net current asset position of £2,132 as of 31 December 2023, indicating minimal working capital buffer but no immediate liquidity concerns. However, the balance sheet is very modest, and the company is still in its early stages of operation, which inherently carries higher risk. The director's loan of £7,423 to the company is unsecured and interest-free, reflecting reliance on related-party funding, which may limit external creditor protections. Given these factors, credit approval should be conditional on obtaining more detailed management accounts and monitoring future trading performance to ensure sustainable cash flows and equity growth.

2. Financial Strength:
   The balance sheet shows total current assets of £55,952 against current liabilities of £53,820, resulting in a net current asset position of £2,132. This is a very thin margin and indicates limited financial cushion. No fixed assets or long-term liabilities are reported, which is typical for a new micro entity. Shareholders’ funds equal net assets of £2,132, indicating that the company is adequately capitalized for its size but has limited equity to absorb shocks. The absence of auditors and reliance on micro-entity reporting standards means less transparency and detail is available for financial scrutiny.

3. Cash Flow Assessment:
   The company’s liquidity appears constrained with net current assets just over £2k. The director’s loan of £7,423 is a material component of the company's resources, but it is repayable on demand and unsecured, which could affect cash availability if called upon. The average employee base of 7 suggests ongoing payroll commitments which require stable cash inflows. No evidence of significant cash reserves or strong receivables is present, so working capital management will be critical. The company should be monitored closely for timely payment of liabilities and any increased reliance on director funding.

4. Monitoring Points:

• Future filed accounts and interim management accounts to assess revenue growth and profitability trends.
• Cash flow statements to verify the company’s ability to meet short-term obligations without increasing director loans.
• Changes in director loans or other related party transactions that might affect liquidity or creditor security.
• Timely filing of annual returns and accounts to ensure regulatory compliance remains intact.
• Business performance in the construction installation and plumbing sectors, as these may be sensitive to economic cycles.