DARTBRIDGE LTD

Executive Summary

Dartbridge Ltd shows signs of robust financial health with a strong liquidity position and growing equity, indicating sound financial management in its early years. The company operates an asset-light model with no employees, which supports stability but may hinder growth potential. With strategic hiring and careful cash flow management, the company is well-positioned for sustainable expansion.

DARTBRIDGE LTD - Analysis Report

Company Number: 14590252

Analysis Date: 2025-07-20 16:05 UTC

Financial Health Assessment for DARTBRIDGE LTD (as of 31 January 2025)

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1. Financial Health Score: B

Explanation:
Dartbridge Ltd demonstrates a solid financial position characterized by healthy liquidity and positive net assets that have more than doubled over two years of operation. While the company shows strong cash reserves and net current assets, it is still in an early growth phase with relatively low fixed assets and no employees, indicating limited operational scale. The financial "vital signs" suggest stability but also highlight areas for growth and efficiency improvement.

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2. Key Vital Signs

Metric	2025 Value	Interpretation
Cash at Bank	£61,349	Strong cash position indicating good liquidity and cash flow health.
Current Assets	£63,728	Mostly liquid assets; very positive for meeting short-term obligations.
Current Liabilities	£20,618	Manageable short-term debts, significantly lower than current assets.
Net Current Assets (Working Capital)	£43,110	Positive working capital signals ability to cover short-term debts comfortably.
Net Assets (Equity)	£44,408	Healthy equity base, showing retained earnings growth from £20K to £44K, a sign of profitability or capital injection.
Fixed Assets (Tangible)	£1,602	Minimal fixed assets suggesting a service-based or asset-light business model.
Employee Count	0	No employees reported; may indicate reliance on directors or contractors.
Dividends Paid	£40,500 (2025)	Dividends are being paid despite the company’s young age, implying some profitability or capital return to shareholders.

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3. Diagnosis: What the Numbers Reveal

• Healthy Cash Flow and Liquidity: The company’s cash reserves are robust, providing a strong buffer to meet immediate financial obligations. This "healthy pulse" reduces risk of short-term financial distress.
• Growing Equity and Retained Earnings: The doubling of net assets and retained earnings over two years indicates either accumulated profits or capital injections, showing financial vitality and investor confidence.
• Low Fixed Assets and No Employees: The business appears to operate with minimal physical assets and no staff, consistent with a specialist medical practice likely run by directors or contractors. This suggests a lean operational model but may limit scalability without investment in human resources.
• Director Advances and Related Party Transactions: The director loan account fluctuates but ends positive, indicating some informal financing within the company. Dividends paid to directors suggest positive earnings but should be monitored to ensure sustainability.
• Tax Liabilities: Current liabilities mainly consist of taxes, indicating compliance with tax obligations but also a significant outflow that needs careful cash flow management.

Overall, the company is in a stable financial condition with a strong liquidity position and growing equity base, but its "nervous system" (operations and workforce) is minimal, which could affect growth potential.

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4. Recommendations: Steps to Improve Financial Wellness

1. Strengthen Operational Capacity:
   Consider hiring or contracting additional staff to support growth and reduce dependency on directors. This can improve service delivery and allow scaling.

2. Monitor Director Loans and Dividend Policy:
   Keep director advances transparent and ensure dividends are paid out of sustainable profits to avoid "bleeding" cash reserves.

3. Asset Investment Strategy:
   While an asset-light model suits the business, evaluate if investment in key equipment or technology could enhance efficiency or service quality.

4. Cash Flow Management:
   Maintain the strong cash position but plan for tax outflows carefully to avoid liquidity crunches at payment dates.

5. Financial Reporting and Audit Readiness:
   Although exempt from audit currently, prepare for audit requirements as the company grows to maintain financial controls and credibility.

6. Growth and Diversification:
   Explore opportunities to diversify services or client base within the medical specialist field to build resilience against sector-specific risks.

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