DANTO CONSULTING LTD

Executive Summary

DANTO CONSULTING LTD exhibits stable and healthy financial vital signs with strong liquidity and equity relative to its size, reflecting sound financial management. The company is financially stable but should monitor rising current liabilities and continue focusing on cash flow to maintain its positive trajectory. With careful oversight and strategic planning, the company’s financial prognosis is favorable.

DANTO CONSULTING LTD - Analysis Report

Company Number: 13477990

Analysis Date: 2025-07-29 16:09 UTC

Financial Health Assessment of DANTO CONSULTING LTD

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1. Financial Health Score: B

Explanation:
DANTO CONSULTING LTD shows a stable and positive financial condition with healthy liquidity and solid equity base relative to its size. The company maintains a good level of net current assets and shareholders’ funds, indicating financial stability. However, the relatively low scale of operations reflected by modest current assets and liabilities, alongside limited historical data (since incorporated in 2021), suggests room for growth and monitoring to ensure sustained health.

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2. Key Vital Signs

Metric	2024 (£)	2023 (£)	Interpretation
Current Assets	9,351	8,212	Indicates available short-term resources to cover liabilities. Slight increase is positive.
Cash at Bank	7,716	6,072	Healthy cash balance relative to liabilities, essential for operational liquidity.
Debtors (Receivables)	1,635	2,140	Moderate receivables; slight decrease suggests improved collections or lower sales on credit.
Current Liabilities	1,746	821	Increase in liabilities may signal higher short-term obligations; warrants monitoring.
Net Current Assets	7,605	7,391	Positive and stable working capital, a sign of liquidity "health."
Shareholders’ Funds	7,605	7,391	Equity equal to net current assets, indicating no long-term debt and solid owner investment.
Employee Count	1	1	Small workforce consistent with micro/small business scale.

Interpretation of Vital Signs:
The company exhibits a "healthy pulse" with cash covering a significant portion of liabilities, ensuring day-to-day obligations can be met without strain. The net current assets and shareholders’ funds growth, albeit modest, show no signs of financial distress or liquidity crunch. The increase in current liabilities requires attention to avoid developing a "symptom" of cash flow stress.

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3. Diagnosis

DANTO CONSULTING LTD’s financial statements reveal a business in a stable but nascent stage. With incorporation in mid-2021 and consistent net current assets and equity, the company demonstrates prudent financial management and liquidity. The absence of long-term debt and reliance on equity funding reflect a conservative financial structure, reducing financial risk.

However, the rise in current liabilities over the last year, while not alarming, may indicate increased short-term payables or accrued expenses. This could be a natural consequence of business growth or timing differences but should be monitored to avoid any liquidity strain.

The company operates with a minimal workforce (one employee including the director), which aligns with its classification as a micro/small enterprise. The nature of its SIC code (74909 – other professional, scientific and technical activities not elsewhere classified) suggests it is likely service-oriented, where cash flow management and receivables turnover are critical.

The absence of audit and limited disclosure is typical for small companies but calls for diligent internal controls to ensure financial accuracy and compliance.

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4. Recommendations

• Monitor Current Liabilities:
  The increase in short-term creditors could be a "red flag" symptom if unchecked. Ensure timely payment schedules and negotiate favorable creditor terms to maintain healthy liquidity.

• Enhance Receivables Management:
  Although receivables have decreased, continued focus on prompt collections will sustain cash flow. Consider implementing stricter credit control policies or incentivizing early payments.

• Build Cash Reserves:
  While current cash levels are adequate, building a buffer for unexpected expenses will strengthen the financial "immune system" against shocks.

• Plan for Growth:
  As the business matures, consider strategic investment in assets or personnel to support expansion. This may involve seeking external finance, but prudent leverage should be maintained.

• Regular Financial Reviews:
  Establish routine financial health check-ups quarterly to detect early symptoms of distress and adapt strategies accordingly.

• Compliance and Governance:
  Maintain up-to-date filings and consider voluntary audits or reviews to boost stakeholder confidence and internal financial discipline.

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