DAM HEALTHCARE LIMITED

Executive Summary

Dam Healthcare Limited shows signs of financial stability for its size and age, with positive net current assets and improving cash balances. However, due to limited financial history and absence of profit and loss data, credit approval is recommended with conditions focusing on monitoring cash flow and financial performance. Continued oversight is essential to ensure the company can meet its short-term obligations reliably.

DAM HEALTHCARE LIMITED - Analysis Report

Company Number: 13065652

Analysis Date: 2025-07-29 12:49 UTC

1. Credit Opinion: CONDITIONAL APPROVAL
   Dam Healthcare Limited is a relatively new entity incorporated in late 2020, operating in the wholesale of pharmaceutical goods. The company demonstrates a positive net current asset position and shareholders’ funds of £60,018 as of 30 September 2023, indicating equity backing. However, the absence of an income statement and limited financial history requires caution. Credit approval is recommended with conditions that include monitoring updated financial performance and confirming cash flow sufficiency to meet short-term obligations.

2. Financial Strength:
   The balance sheet shows current assets of £113,225 against current liabilities of £56,457, resulting in net current assets (working capital) of £56,768. The company holds intangible fixed assets valued at £3,250 and has shareholders’ funds of £60,018, reflecting a modest but positive equity base. Despite this, the company’s trade creditors (£108,560) exceed trade debtors (£93,578), which suggests some discrepancies in creditor classification or timing of payments. Overall, the company presents a small but stable financial base characteristic of a small private limited company.

3. Cash Flow Assessment:
   Cash at bank is £12,735, which is a significant increase from £100 the previous year, indicating improved liquidity. Debtors are substantial at £100,490, but the ability to convert these to cash timely is unknown. Current liabilities of £56,457 are manageable relative to current assets. The positive net current assets imply the company has adequate short-term liquidity; however, the relatively low cash balance compared to trade creditors warrants close monitoring of cash flow cycles and debtor collections.

4. Monitoring Points:

• Obtain and review the company’s income statement and cash flow statements when available to assess profitability and cash generation.
• Monitor debtor aging and collection efficiency to ensure liquidity is maintained.
• Track creditor payment terms and ensure no build-up of overdue payables that could indicate cash flow stress.
• Review any changes in ownership or director appointments that might affect governance or control.
• Watch for updates on financial performance due to the company’s young age and evolving business model.