D R VETERINARY SERVICES LIMITED

Executive Summary

D R Veterinary Services Limited shows encouraging growth in net assets and a solid asset base, reflecting positive business development. However, a significant increase in liabilities and reduced working capital signal caution is needed to maintain liquidity health. Proactive debt management and cash flow monitoring will be crucial to ensure sustained financial wellness.

D R VETERINARY SERVICES LIMITED - Analysis Report

Company Number: 12831334

Analysis Date: 2025-07-20 15:28 UTC

Financial Health Assessment for D R Veterinary Services Limited

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1. Financial Health Score: B

Explanation:
D R Veterinary Services Limited exhibits solid financial footing with a healthy growth in net assets over recent years and controlled liabilities. However, the presence of significant long-term debt and a decline in net current assets signals areas requiring attention to avoid liquidity stress. Overall, the company shows promising stability but should monitor cash flow and debt servicing carefully.

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2. Key Vital Signs

• Net Assets (Equity): £53,316 (2024) up from £20,646 (2023)
  Interpretation: Indicates growing retained earnings and an expanding equity base — a "healthy heartbeat" showing company value appreciation.

• Net Current Assets (Working Capital): £9,766 (2024) down from £20,646 (2023)
  Interpretation: Positive but declining working capital suggests reduced short-term liquidity, a "mild symptom of cash flow tightening."

• Current Liabilities: £80,292 (2024) sharply increased from £4,695 (2023)
  Interpretation: Large rise largely due to long-term creditors classified within current liabilities — a "symptom of impending repayment obligations" that need close management.

• Fixed Assets: £127,489 (2024) with tangible assets of £28,999 and other financial assets of £98,490
  Interpretation: Significant investments in long-term assets and financial holdings represent "strong structural support" but may reduce liquidity flexibility.

• Cash Balance: £21,321 (2024), slightly lower than £25,341 (2023)
  Interpretation: Cash remains relatively stable, providing some buffer — a "healthy pulse" for day-to-day operations.

• Debt Position: £80,292 due after more than one year, including long-term bank loans repayable in installments over five years
  Interpretation: Considerable debt load introduces "cardiac stress" on financial health, requiring disciplined servicing.

• Staffing: 1 employee (including director)
  Interpretation: Micro-business scale, which can mean agility but also vulnerability to personnel risks.

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3. Diagnosis

D R Veterinary Services Limited is in an overall stable but cautious financial condition. The company's equity growth and asset base expansion are positive indicators of business development and profitability. However, the rise in liabilities, particularly long-term loans now due within the year, creates a "symptom of financial strain" that could reduce liquidity if not managed prudently.

The net current assets remain positive, indicating the company can cover short-term obligations, but the decline from prior year warns of potential tightening liquidity. The company’s investment in fixed and financial assets indicates confidence in long-term operations but may reduce cash availability in the short term.

The business appears to be managing its "financial metabolism" well, but the substantial debt load and reduced working capital call for vigilant cash flow monitoring and potentially restructuring liabilities to avoid distress.

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4. Recommendations

• Strengthen Liquidity Management:
  Enhance cash flow forecasting and maintain a buffer above immediate liabilities. Consider negotiating with lenders to smooth debt repayments and avoid liquidity "cramps."

• Debt Restructuring:
  Explore refinancing options to extend maturities or reduce interest costs, lessening "cardiac stress" on the financial system.

• Asset Utilization Review:
  Assess the performance and necessity of financial assets (£98,490) to ensure they contribute to liquidity or long-term returns rather than tying up capital.

• Cost Control and Revenue Growth:
  With only 1 employee, operational efficiency is key. Explore avenues to increase revenue while controlling overheads.

• Regular Financial Check-Ups:
  Schedule quarterly reviews of key metrics, especially working capital and debt levels, to catch early "symptoms" of distress.

• Contingency Planning:
  Prepare for potential cash flow shocks with access to emergency funds or credit lines.

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