Company Number: 13130346

Analysis Date: 2025-07-20 13:58 UTC

Financial Health Assessment for DAGENHAM DOUBLE GLAZING LIMITED

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1. Financial Health Score: B

Explanation:
Dagenham Double Glazing Limited demonstrates a generally sound financial position for a micro-entity in its early years, with positive net assets and a growing shareholder equity base. However, the company shows signs of working capital stress due to current liabilities exceeding current assets in the latest year, which slightly dampens the financial health score. The increase in net assets and shareholder funds is a positive indicator, but the negative net current assets ("symptom of liquidity strain") requires attention.

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2. Key Vital Signs

Vital Sign	2024 Value	Interpretation
Fixed Assets	£8,215	Stable investment in long-term assets, indicating some capital base.
Current Assets	£9,471	Working capital resources, including cash and receivables.
Current Liabilities	£11,712	Short-term obligations rising, now exceeding current assets—a liquidity concern.
Net Current Assets	-£2,241	Negative working capital indicating potential cash flow constraints ("cash flow faltering").
Total Net Assets	£5,974	Positive equity base, showing the company has value beyond liabilities.
Shareholders’ Funds	£5,974	All equity belonging to the owner(s), increased from £2,595 in prior year; a sign of growth.
Employees	3 (average)	Slight increase in workforce, indicating operational growth.

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3. Diagnosis: What the Financial Data Reveals

• Liquidity Symptoms: The company’s current assets at £9,471 are now less than current liabilities of £11,712, resulting in negative net current assets. This suggests a symptom analogous to "shortness of breath" in financial terms — the business may face difficulties meeting short-term obligations without external support or improved cash flow management.

• Asset Base & Equity: Despite working capital challenges, the company’s total net assets and shareholder funds have more than doubled from £2,595 (2023) to £5,974 (2024), indicating retained earnings or capital infusion, a positive sign akin to a "strengthening heartbeat."

• Growth & Operations: The modest increase in employees and stable fixed assets suggest the company is expanding operations cautiously. However, the decrease in fixed assets from £9,200 (2023) to £8,215 (2024) may imply asset disposals or depreciation outpacing acquisitions.

• Micro-Entity Scale: Being a micro-entity allows for simpler reporting but also indicates the company operates on a smaller scale with limited resources, which requires careful cash flow monitoring.

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4. Recommendations: Steps to Improve Financial Wellness

• Improve Liquidity Management: Address the negative working capital by accelerating receivables collection, negotiating longer payment terms with suppliers, or increasing cash reserves. Like improving "oxygen intake," ensuring positive net current assets is vital to keep operations healthy.

• Monitor Cash Flow Closely: Implement detailed cash flow forecasting and budgeting to avoid sudden shortfalls that could cause distress.

• Evaluate Asset Utilization: Review fixed asset performance and consider whether disposals or upgrades align with strategic goals.

• Consider Financing Options: If working capital issues persist, explore short-term financing or credit facilities to bridge gaps without compromising operational capability.

• Maintain Growth Discipline: While adding staff and expanding operations is positive, ensure growth is sustainable and supported by adequate financial resources.

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