DAMU LTD

Executive Summary

DAMU LTD currently operates as a dormant company with no trading activity but maintains a stable balance sheet primarily consisting of equity and debtors. While financially stable, the company shows no signs of operational health or growth. To improve financial wellness, strategic decisions regarding activation, compliance, and financial planning are essential.

DAMU LTD - Analysis Report

Company Number: 13633235

Analysis Date: 2025-07-29 20:20 UTC

Financial Health Assessment for DAMU LTD

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1. Financial Health Score:

Grade: C (Stable but Dormant)

DAMU LTD is in a financially stable but dormant state, showing no active trading or operational activity. The financials reveal a "healthy" balance sheet but no revenue generation or operational cash flow. This places the company in a neutral zone—no immediate distress but no active growth or income either.

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2. Key Vital Signs

Metric	Value (£)	Interpretation
Current Assets	15,000	Entirely debtors; no cash or inventory indicating inactivity.
Net Current Assets	15,000	Positive working capital but solely based on debtors (likely due).
Net Assets	15,000	Reflects initial share capital; no retained earnings or profits.
Shareholders’ Funds	15,000	All equity from share capital; no debt or liabilities.
Number of Employees	0	No operational staff; confirms dormant status.
Account Category	Dormant	No significant financial transactions recorded.
Profit & Loss Account	Not filed	No trading activity reported.

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3. Symptoms Analysis

• Healthy Balance Sheet but No Trading Activity: The company’s balance sheet shows constant assets and equity over four years, all £15,000, with no growth or decline. This is typical for a dormant company that has not undertaken operational activities or generated revenue.

• No Cash or Operational Assets: The current assets are entirely debtors, which may be nominal or inter-company amounts without actual cash inflows, indicating no active business operations or cash flow.

• No Employees or Expenses: The absence of employees or reported expenses further confirms the business is not trading.

• No Audit Requirement: The company has taken advantage of dormant company exemptions, meaning it is not required to produce full financial statements or profit and loss accounts.

• No Trading Revenue or Profit: Lack of a profit and loss account filing indicates no income or expenses, a classic symptom of dormancy.

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4. Diagnosis

DAMU LTD is effectively a dormant private limited company, maintaining its legal existence without engaging in business operations, generating income, or incurring expenses. The company's financial health is "stable" in that it has no liabilities or losses, but it also shows "symptoms" of inactivity — no growth, no cash flow, and no operational assets. This is not a sign of financial distress but of business inactivity, which may be strategic (e.g., holding company status) or preparatory for future operations.

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5. Prognosis

If the company continues in its current dormant state, it will maintain this stable but inactive financial position. However, prolonged dormancy without business development may risk regulatory issues or loss of business opportunities. Should the company decide to activate and trade, initial financial investment and operational planning will be necessary to build up current assets beyond debtors and generate cash flow.

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6. Recommendations

• Review Business Strategy: Determine if dormancy is intentional and aligns with long-term business goals. If planning to trade, prepare for operational setup and funding.

• Maintain Compliance: Continue timely filing of dormant accounts and confirmation statements to avoid penalties.

• Prepare for Activation: If business operations are to commence, ensure cash reserves and working capital are adequate to support trading activities.

• Monitor Debtors: Clarify the nature of the £15,000 debtors to ensure they are collectible and not obsolete receivables.

• Consider Financial Planning: Engage in budgeting and forecasting before activating trading to avoid liquidity issues.

• Explore Growth Opportunities: If the company aims to grow, consider raising additional capital or securing financing to support operational expenditures.

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