Company Number: 13659997

Analysis Date: 2025-07-29 16:56 UTC

Financial Health Assessment Report for Dash Developments (East Anglia) Limited
As at 31 October 2023

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1. Financial Health Score: C

This grade reflects a company showing some warning signs of financial strain despite maintaining a positive net asset position. The firm has experienced a deterioration in working capital and cash resources over the last year, indicating symptoms of financial stress that require attention but not immediate alarm.

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2. Key Vital Signs

Metric	2023 Value	2022 Value	Interpretation
Fixed Assets	£12,301	£16,400	Slight decrease; normal wear and depreciation.
Current Assets	£38,867	£65,586	Significant drop (~41%); indicates reduced liquidity.
Cash at Bank	£10,658	£48,123	Sharp decline (~78%); potential cash flow tightening.
Debtors	£28,209	£17,463	Increase; more money tied up in receivables.
Current Liabilities	£42,072	£75,260	Substantial reduction (~44%); positive but still higher than current assets.
Net Current Assets (Working Capital)	-£3,205	-£9,674	Negative working capital persists but improved from prior year.
Net Assets (Equity)	£8,942	£6,726	Positive and increased; shareholder equity remains intact.
Shareholders' Funds	£8,842	£6,626	Mirrors net assets, showing retained profits support equity.

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3. Diagnosis: Financial Health Overview

Dash Developments (East Anglia) Limited is currently an active private limited company operating in the building completion and finishing industry. The company’s financial "vital signs" illustrate a mixed picture:

• Working Capital Deficit: The company exhibits a negative net current asset position (working capital) for the second consecutive year, which means its short-term liabilities exceed its short-term assets. This is a classic symptom of liquidity stress, suggesting the company might struggle to meet immediate obligations without additional cash inflows or financing. However, the working capital position has improved markedly from -£9,674 in 2022 to -£3,205 in 2023, indicating some relief.

• Deteriorating Cash Reserves: The most concerning symptom is the steep fall in cash reserves from £48,123 in 2022 to £10,658 in 2023. Healthy cash flow is essential for day-to-day operations, and this significant reduction signals potential difficulties in covering operational expenses or absorbing unexpected costs.

• Rising Debtors: The increase in trade debtors to £28,209 suggests that more money is tied up in customer payments outstanding. This could indicate slower collections or extended credit terms, which further strains liquidity.

• Reduced Current Liabilities: The company has managed to reduce its current liabilities from £75,260 to £42,072, a positive step indicating some short-term debt repayment or better management of payables.

• Stable Net Assets: Despite the liquidity concerns, the company’s net assets remain positive and have increased from £6,726 to £8,942, signaling that the company’s overall financial structure is still solvent, and shareholders’ equity is preserved.

• Director’s Loan Account: The increase in the director’s loan account to £16,780 is notable. This may reflect personal funding by the director to support the business, which can be a sign of commitment but also a red flag if the company is reliant on director loans for liquidity.

• Small Scale and Single Director Operation: With only one employee/director and small asset base, the company’s financial health is inherently more vulnerable to operational disruptions.

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4. Recommendations for Financial Wellness Improvement

a. Strengthen Cash Flow Management

• Implement stricter credit control processes to accelerate debtor collections and reduce days sales outstanding.
• Consider offering early payment incentives or more rigorous follow-up on overdue invoices.
• Monitor cash flow forecasts weekly to anticipate liquidity shortages early.

b. Address Working Capital Deficit

• Negotiate extended payment terms with suppliers to better align cash outflows with inflows.
• Explore short-term financing options such as an overdraft or invoice financing to bridge working capital gaps while improving operational cash flow.

c. Review Director Loan Usage

• Formalize director loans with clear terms and repayment schedules to avoid potential future disputes or tax implications.
• Evaluate the sustainability of relying on director funding and explore other funding sources if needed.

d. Cost Control and Business Planning

• Review overhead and operational costs to identify possible reductions or efficiencies.
• Update business and financial plans to reflect current market conditions and improve profitability.

e. Maintain Timely Filings and Compliance

• Continue to ensure accounts and confirmation statements are filed on time to preserve regulatory compliance and avoid penalties.

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Medical Analogy Summary

Dash Developments (East Anglia) Limited currently shows "symptoms of financial distress," particularly in liquidity and cash flow, akin to a patient with a weakened immune system struggling to fight infections. However, the company's "vital signs" such as positive net assets and reduced liabilities indicate it is not in critical condition. With timely interventions—strengthening cash flow, managing working capital, and careful financial planning—the company can stabilize and regain a "healthy financial pulse."

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