DAMBA DESIGN & TECHNOLOGIES LIMITED

Executive Summary

DAMBA DESIGN & TECHNOLOGIES LIMITED is currently dormant with minimal financial activity, reflected by nominal cash and net assets. While compliant with filing requirements, the company shows no signs of operational trading, placing it at a fragile early stage. To improve financial health, initiating active trading and building financial reserves are critical next steps.

DAMBA DESIGN & TECHNOLOGIES LIMITED - Analysis Report

Company Number: 15019714

Analysis Date: 2025-07-29 13:42 UTC

Financial Health Assessment for DAMBA DESIGN & TECHNOLOGIES LIMITED

---

1. Financial Health Score: Grade D

Explanation:
DAMBA DESIGN & TECHNOLOGIES LIMITED is currently classified as a dormant company with minimal financial activity. The financial "vital signs" reveal only a nominal cash balance and net assets of £100, indicating no active trading or operational income. This places the company in a fragile state with limited financial robustness, hence a grade D. While not in distress, the company exhibits symptoms of inactivity rather than healthy growth or trading.

---

2. Key Vital Signs

Metric	Value (£)	Interpretation
Cash	100	Very low cash reserves; indicates no trading cash inflow.
Net Assets	100	Minimal asset base, consistent with dormant status.
Shareholders’ Funds	100	Equity equals net assets; no retained earnings or liabilities.
Account Category	Dormant	No significant financial transactions during the year.
Filing Status	Up to date	Compliance with filing deadlines, no penalties.
Incorporation Date	2023-07-21	Newly formed company, less than 2 years old.

Interpretation: The vital signs indicate a company in a "sleep mode" with no active financial operations. The cash balance and net assets are symbolic, showing the company is maintaining legal compliance but not yet generating revenue or incurring expenses.

---

3. Diagnosis

The company's financial condition resembles a patient in a state of dormancy or rest—there are no symptoms of active trading such as revenue, expenses, or investment into assets. This state is not abnormal for a company newly incorporated in 2023, especially in specialised design activities, where initial development or setup phases may precede operational trading.

However, the financial "pulse" is weak; the company lacks working capital and operational cash flow, which are critical for sustaining business health once trading begins. The absence of liabilities is positive in the short term but also reflects no financial leverage or operational commitments.

The director's sole control and shareholding concentration indicate centralized decision-making, which can be good for agility but also a risk if the business does not diversify control or expertise as it grows.

---

4. Recommendations

• Initiate Active Trading: To move from dormancy to healthy operation, the company should plan to start trading activities soon. This will generate cash flow and build working capital, essential for financial vitality.

• Financial Planning and Budgeting: Develop a detailed business plan including expected revenues, costs, and investment needs. This will help anticipate cash flow needs and avoid liquidity crises.

• Build Cash Reserves: Even a modest cash buffer is crucial for operational flexibility. Consider initial capital injections or loans to strengthen cash position before active trading.

• Compliance Monitoring: Continue timely filing of accounts and confirmation statements to avoid penalties and maintain good standing with Companies House.

• Governance and Risk Management: As the company grows, consider expanding the board or management team to spread responsibilities and enhance oversight.

• Regular Financial Health Check-ups: Once trading begins, regularly monitor key financial metrics such as liquidity ratios, profitability, and working capital to detect early signs of financial distress or growth opportunities.

---