DANIEL MOON LIMITED

Executive Summary

DANIEL MOON LIMITED exhibits excellent financial health characterized by strong liquidity, solid net assets, and minimal liabilities, reflecting a stable foundation typical for a micro-entity holding company. The primary caution lies in off-balance-sheet guarantees which should be monitored as potential contingent liabilities. Overall, the company is well-positioned financially with a positive outlook if prudent risk management continues.

DANIEL MOON LIMITED - Analysis Report

Company Number: 14409468

Analysis Date: 2025-07-29 17:00 UTC

Financial Health Assessment for DANIEL MOON LIMITED

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1. Financial Health Score: A

Explanation:
DANIEL MOON LIMITED demonstrates a robust financial position characterized by a strong net asset base relative to liabilities, excellent liquidity (working capital), and a clean balance sheet with minimal fixed assets. The micro-entity scale and early stage of the company limit the breadth of financial data, but current indicators reflect a "healthy cash flow" and solid capital foundation, indicating excellent financial wellness at this stage.

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2. Key Vital Signs

Metric	Value (£)	Interpretation
Fixed Assets	199	Very low fixed assets, indicating minimal investment in long-term physical assets—typical for holding companies.
Current Assets	434,834	Strong liquidity pool, indicating healthy short-term financial resources.
Current Liabilities	45,178	Relatively low short-term obligations, well covered by current assets.
Net Current Assets (Working Capital)	389,656	Very healthy working capital, signaling the company can easily meet its short-term liabilities.
Net Assets / Shareholders’ Funds	389,855	Positive and substantial net worth, reflecting solid equity and retained capital.
Share Capital	100	Minimal share capital, typical for a micro-entity and early-stage company.
Financial Commitments (Guarantees)	£688,380	Off-balance-sheet cross-guarantees present a potential contingent liability risk.

Key Observations:

• The company’s net current assets far exceed current liabilities, showing strong liquidity and “healthy cash flow” capacity.
• Net assets reflect the company’s equity strength and absence of significant debt.
• The presence of contingent liabilities (cross guarantees) is a “symptom” that requires monitoring but does not currently impair financial health.
• No employees beyond the director, consistent with micro-entity status and low operational complexity.

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3. Diagnosis

Financial Condition:
DANIEL MOON LIMITED is in excellent financial health for a young, micro-entity holding company. The balance sheet shows a “healthy pulse” with strong liquidity and net assets cushions, minimal liabilities, and no accrued losses. The low fixed asset base aligns with its SIC code indicating holding company activity rather than operational asset-heavy business.

The company’s financial “vital signs” suggest no immediate distress or liquidity issues. The director’s loan, fully repaid post period-end, indicates good internal financial management and support. The off-balance-sheet guarantees, while not directly impacting current financial stability, represent a latent risk that should be carefully managed to avoid future strain.

Given the company incorporated in late 2022 and reporting for one full year, the financial statements reflect a stable foundation without growth pressures or financial stress symptoms.

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4. Recommendations

• Monitor Contingent Liabilities: Maintain close oversight of the £688,380 cross-guarantees related to the associated company. While currently off-balance sheet, these could become real liabilities if the associated company defaults, potentially impacting financial health. Establish a contingency plan or formal risk mitigation strategy.
• Build Operational Reserves: As the company grows, consider building retained earnings or reserves to support business expansions or absorb unforeseen expenses.
• Maintain Strong Cash Flow Management: Continue prudent liquidity management to preserve the excellent working capital position and ensure smooth operations.
• Plan for Growth: If operational activities increase, plan for investment in fixed assets or operational resources, balancing growth ambitions with financial prudence.
• Regular Financial Reviews: Conduct periodic financial health assessments to detect any emerging symptoms of distress early, especially as the company matures or the scale of operations increases.

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