DAIKAN SPORTS ADVISORY LTD

Executive Summary

Daikan Sports Advisory LTD shows a solid financial foundation typical of a well-managed micro-entity start-up, with strong liquidity and positive net assets. While the company currently exhibits no financial distress symptoms, attention to governance diversification and strategic planning will enhance sustainability and growth prospects. Continuing prudent financial management and preparing for future scaling challenges will support ongoing financial wellness.

DAIKAN SPORTS ADVISORY LTD - Analysis Report

Company Number: 14881510

Analysis Date: 2025-07-20 14:57 UTC

Financial Health Assessment for Daikan Sports Advisory LTD

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1. Financial Health Score: B

Explanation:
Daikan Sports Advisory LTD demonstrates strong early-stage financial health typical of a newly incorporated micro-entity. The company shows a solid net asset position and healthy working capital. However, as a start-up with limited history and minimal fixed assets, there is moderate uncertainty in sustainability and growth potential, meriting a good but not top-tier grade.

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2. Key Vital Signs

Metric	Value (£)	Interpretation
Fixed Assets	1,400	Very low fixed asset base, typical for a consultancy start-up; indicates limited investment in physical assets.
Current Assets	80,820	Healthy level of liquid and short-term assets, suggesting good cash or receivables position.
Current Liabilities	18,192	Short-term obligations are moderate, manageable given current assets.
Net Current Assets	62,628	Strong positive working capital, indicating the company can comfortably meet short-term debts.
Net Assets (Shareholders’ Funds)	64,028	Positive equity base showing the company is solvent with assets exceeding liabilities.
Number of Employees	2	Small team, consistent with micro-entity status; manageable payroll obligations.
Control Structure	Single individual controls 75-100% shares and voting rights, indicating centralized decision-making.

Interpretation:

• The healthy cash flow symptom is evident through a strong net current asset position, indicating no immediate liquidity distress.
• The low fixed asset symptom is normal for this sector and company size but points to minimal physical infrastructure investment.
• The solvency symptom is positive, with net assets exceeding liabilities by a comfortable margin.
• The youthful lifecycle symptom suggests the company is in its infancy, thus early-stage financial metrics should be monitored carefully for growth trends.

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3. Diagnosis

Daikan Sports Advisory LTD is financially stable with no symptoms of distress. The company exhibits a robust liquidity position and positive equity, which are critical for survival and operational flexibility. The limited fixed assets reflect the nature of the management consultancy industry, where human capital and intellectual property dominate rather than physical assets.

The single controlling shareholder/director structure provides clear governance but could pose a risk if over-reliance on one individual affects decision-making or succession planning.

As a micro-entity incorporated less than a year ago, the company is still establishing its market presence and revenue streams. The absence of audit requirements and simplified filing status reduces compliance burden but may limit external scrutiny.

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4. Recommendations

1. Maintain Strong Working Capital Management:
   Continue to monitor cash flow closely to avoid liquidity bottlenecks, especially as the company scales and potentially takes on more clients or expenses.

2. Develop a Financial Forecast and Budget:
   Prepare detailed short and medium-term financial plans to project revenues and costs, aiding in strategic decision-making and investor confidence.

3. Consider Diversifying Governance:
   Introduce additional directors or advisors to broaden oversight and reduce risk of centralized control. This can also strengthen credibility with clients and lenders.

4. Invest in Intellectual Property and Brand Development:
   Since physical assets are minimal, focus on building intangible assets such as proprietary methodologies, client relationships, and brand recognition.

5. Prepare for Future Compliance Requirements:
   As the company grows, it will transition out of micro-entity status. Early preparation for audit and enhanced reporting will smooth this progression.

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