Company Number: 12833262

Analysis Date: 2025-07-20 12:32 UTC

Financial Health Assessment of D Y DANSO LTD

---

1. Financial Health Score: D (Poor)

Explanation:
The company’s financial position has deteriorated significantly in the latest year with net current liabilities of £98 versus net current assets of £46 in prior years. The negative net assets in 2024 indicate the company is technically insolvent on a balance sheet basis. This is a concerning symptom that flags financial distress.

---

2. Key Vital Signs

Metric	2024 (£)	2023 (£)	Interpretation
Current Assets	112	2,074	Drastic decline in liquid or short-term assets; possible cash flow issues
Current Liabilities	210	2,028	Slight decrease but still significant short-term obligations
Net Current Assets (Working Capital)	-98	46	Shift from positive to negative working capital, indicating inability to cover short-term debts
Net Assets (Shareholder Equity)	-98	46	Negative equity signals balance sheet insolvency
Share Capital	1.00	1.00	Minimal share capital, typical for a micro entity

Additional Notes:

• No employees, indicating a very small or dormant operational footprint.
• No audit required due to micro-entity status, limiting detailed financial scrutiny.
• Director’s occupation unrelated to company business (Crane Supervisor), possibly indicating a sole proprietor or very small-scale operation.

---

3. Diagnosis

The company is exhibiting clear symptoms of financial distress, notably:

• Negative net current assets and net assets in 2024: This is akin to a patient showing signs of organ failure; the company cannot meet its short-term obligations from its current liquid resources.
• Severe reduction in current assets: From £2,074 in 2023 to only £112 in 2024, indicating a drying up of cash or receivables—this suggests possible operational difficulties or poor cash management.
• Persistently low shareholder funds: The equity base is minimal and has turned negative, implying accumulated losses or liabilities exceeding assets.
• Lack of human resources: No employees may mean limited capacity to generate revenue or grow.

Overall, these factors suggest the company is in a precarious financial state and may be at risk of insolvency if the situation is not remediated promptly.

---

4. Recommendations

To improve financial wellness and stabilize the company, consider the following steps:

• Immediate Cash Flow Management:
  • Conduct a detailed cash flow forecast to identify timing and quantum of cash needs.
  • Seek short-term financing or inject additional capital to cover immediate liabilities.
• Cost Control and Revenue Generation:
  • Review business operations to identify cost-saving opportunities.
  • Explore avenues for increasing sales or securing contracts in the construction industry to rebuild current assets.
• Balance Sheet Strengthening:
  • Consider capital injection or shareholder loans to restore positive net assets.
  • Negotiate with creditors for extended payment terms to ease short-term liquidity pressure.
• Professional Advisory:
  • Engage a financial advisor or insolvency practitioner to assess viability and explore restructuring options if necessary.
• Monitor and Report:
  • Ensure timely filing of accounts and confirmation statements to maintain regulatory compliance and avoid penalties.
  • Regularly review financial metrics to detect early warning signs.

---