CASSIE'S D & A SERVICES LTD

Executive Summary

CASSIE'S D & A SERVICES LTD demonstrates a stable financial position with strong equity growth and manageable liabilities. However, the sharp decline in cash reserves signals a potential liquidity risk that should be addressed through improved cash flow management and debtor collection. With attentive financial monitoring and operational discipline, the company is well-positioned for continued financial wellness.

CASSIE'S D & A SERVICES LTD - Analysis Report

Company Number: 13042977

Analysis Date: 2025-07-20 12:52 UTC

Financial Health Assessment for CASSIE'S D & A SERVICES LTD

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1. Financial Health Score: B

Explanation:
The company exhibits a solid financial foundation with positive net assets and growing retained earnings. Its liquidity position, while adequate, shows some signs of tightening cash availability. Overall, the business appears financially stable but should monitor cash flow carefully to maintain healthy operations.

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2. Key Vital Signs

Metric	2024 Value (£)	Interpretation
Current Assets	20,129	Adequate short-term assets, mostly debtors; cash is a small portion indicating potential liquidity pressure.
Cash	629	Very low cash reserves ("healthy cash flow" symptom weakened), possibly indicating delayed collections or high outflows.
Debtors	19,500	Significant portion of current assets tied up in receivables; risk if collection slows.
Current Liabilities	1,287	Low short-term debts suggest manageable obligations due soon.
Net Current Assets (Working Capital)	18,842	Positive and stable, showing sufficient short-term buffer to cover liabilities.
Net Assets (Equity)	18,342	Strong equity base relative to liabilities, indicating ownership value and solvency.
Retained Earnings	18,341	Accumulated profits indicate consistent profitability and reinvestment in the business.
Share Capital	1	Minimal nominal capital, typical for small private companies; equity mainly from retained earnings.

Trend Notes:

• Cash decreased sharply from £7,670 in 2023 to £629 in 2024 — a symptom of potential cash flow tightening.
• Debtors increased, suggesting sales growth or slower collections.
• Current liabilities sharply reduced, improving short-term solvency.
• Net assets increased, demonstrating overall growth in company value.

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3. Diagnosis

CASSIE'S D & A SERVICES LTD is showing the vital signs of a mostly healthy financial condition. The company’s net assets and retained earnings are growing, which signals profitability and value creation. The positive working capital indicates the company can cover its short-term obligations without distress.

However, the cash position is a symptom of concern: the dramatic drop in cash on hand despite an increase in debtors points to a "circulatory issue" in cash flow. This could be due to slower payments from customers or higher operational expenses not yet reflected in liabilities. While the company is not in immediate distress, this tight cash flow could lead to liquidity stress if not managed carefully.

The single director and sole owner structure simplifies decision-making but places responsibility squarely on leadership to ensure continued financial discipline.

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4. Recommendations

• Improve Cash Flow Management:
  Prioritize accelerating debtor collections through stricter credit control and timely invoicing. Consider negotiating payment terms with customers or offering early payment incentives.

• Maintain Low Short-Term Liabilities:
  Keep current liabilities under control to avoid liquidity crunches, especially as cash is tight.

• Build Cash Reserves:
  Focus on rebuilding cash balances to a healthier level to provide a buffer for unexpected expenses or delays in receivables.

• Regular Financial Monitoring:
  Implement monthly cash flow forecasting to detect early signs of cash shortages and plan accordingly.

• Consider Diversifying Income or Financing Options:
  If cash flow issues persist, explore short-term financing solutions or diversify revenue streams to stabilize inflows.

• Continue Leveraging Retained Earnings:
  Use accumulated profits strategically to invest in growth or operational improvements without overextending financially.

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Medical Analogy:
CASSIE'S D & A SERVICES LTD is like a patient with strong bones and muscles (solid net assets and profitability) but experiencing mild dehydration (low cash). The overall health is good, but the patient needs to hydrate (improve cash flow) to ensure vitality and avoid complications.

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