Company Number: 12461087

Analysis Date: 2025-07-20 15:47 UTC

Financial Health Assessment for DANIEL ANDREW CONSTRUCTION LTD

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1. Financial Health Score: B+

Explanation:
The company demonstrates solid financial health with positive net assets, improving asset base, and strong working capital. The rising net assets and net current assets indicate a growing and stable financial position typical of a healthy micro-entity construction business. However, the presence of some short-term liabilities and the relatively modest size of the business keep the score just below top-tier.

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2. Key Vital Signs

Metric	2025 (£)	2024 (£)	Interpretation
Fixed Assets	35,604	24,060	Increasing investment in long-term assets, signaling growth.
Current Assets	121,708	127,667	Healthy current assets, largely cash or receivables.
Current Liabilities	19,455	73,479	Significant reduction in short-term debts; positive sign.
Net Current Assets	102,253	54,188	Working capital more than doubled—excellent liquidity.
Net Assets	132,353	76,955	Strong equity base, growing steadily year-on-year.
Share Capital	100	100	Minimal paid-in share capital, typical for micro-entities.
Employees	3	3	Stable workforce size, consistent with company scale.

Interpretation:

• Liquidity: The company's ability to cover short-term liabilities more than doubled, indicating "healthy cash flow" and good short-term financial resilience.
• Solvency: Positive and increasing net assets show the company is solvent with a strong equity cushion.
• Growth: Increasing fixed assets suggest reinvestment in the business, an encouraging sign of strategic growth.
• Stability: Consistent employee numbers and no overdue filings imply operational and regulatory stability.

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3. Diagnosis

The financial "vital signs" reveal a business that is financially "fit" and growing steadily. The company has maintained positive working capital, which is a key "heartbeat" indicator of daily operational health. The reduction in current liabilities suggests improved management of short-term obligations, reducing financial "stress" symptoms.

The equity base has nearly doubled in one year, indicating retained earnings or capital injections that boost financial "immunity" against downturns. The increase in fixed assets is a "sign of building strength," showing investment in tools or equipment essential for construction activities.

No red flags such as negative net assets, overdue filings, or declining liquidity were observed, which means the company is free from acute financial distress symptoms.

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4. Recommendations

• Maintain Strong Liquidity: Continue prudent management of receivables and payables to preserve the excellent working capital position.
• Monitor Debt Levels: Keep an eye on any increases in liabilities, especially longer-term debt, to avoid future liquidity strain.
• Plan for Growth: With rising fixed assets, consider strategic planning for capacity expansion or diversification to sustain growth.
• Document Profit & Loss: Although exempt as a micro-entity, preparing internal P&L statements can help identify profit margins and cost control areas.
• Regular Financial Reviews: Conduct periodic financial health checks to catch early signs of distress, ensuring ongoing fiscal fitness.

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