DATA ANALYTIC EXPERTS LTD

Executive Summary

DATA ANALYTIC EXPERTS LTD shows commendable financial health with increasing equity and strong liquidity, reflecting sound management of resources and low financial distress risk. While currently stable, enhancing profitability disclosures and preparing for potential growth will safeguard ongoing financial wellness.

DATA ANALYTIC EXPERTS LTD - Analysis Report

Company Number: 12796266

Analysis Date: 2025-07-20 12:35 UTC

Financial Health Assessment: DATA ANALYTIC EXPERTS LTD

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1. Financial Health Score: A-

Explanation:
This company demonstrates strong financial stability with healthy liquidity and increasing net assets over the past five years. The micro-entity status and exemption from audit reflect a small but well-managed operation. The slight deduction from a perfect "A" is due to limited scale and lack of detailed profit and loss disclosure, which restricts deeper insight into profitability and cash flow dynamics.

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2. Key Vital Signs

Metric	2024 Value (£)	Analysis
Current Assets	144,884	Healthy short-term resources to meet immediate obligations.
Current Liabilities	22,289	Low short-term debt, indicating manageable obligations.
Net Current Assets	122,595	Strong working capital; "healthy cash flow cushion."
Net Assets (Equity)	122,695	Growing equity base, reflecting retained earnings or capital growth.
Share Capital	100	Minimal share capital consistent with micro-entity status.
Employee Count	1	Lean operation, low overhead risk.
Filing Status	Up to date	No overdue filings, indicating good compliance and governance.

Trend Analysis:

• Steady year-on-year increase in net current assets and net assets from £65,618 in 2020 to £122,695 in 2024 indicates strengthening financial position.
• Current liabilities remain low and stable, showing no signs of rising short-term financial pressure.
• Consistency in employee numbers suggests stable operational scale without expansion strain.

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3. Diagnosis

The company's financial "vital signs" reveal a business with solid liquidity and a growing equity base, akin to a patient with a strong heart rate and stable blood pressure—key indicators of health. The working capital position is robust, implying that the business is not facing liquidity distress and has sufficient resources to cover its short-term debts.

The balance sheet shows a clean structure with minimal liabilities relative to assets, which suggests no symptoms of financial stress such as over-leverage or insolvency risk. The consistent growth in net assets highlights retained profits or capital injections, both positive signs.

However, the company is small (micro-entity), which inherently limits the scope for economies of scale or risk diversification. The lack of a profit and loss statement in the filings restricts assessment of profitability and operational efficiency, leaving some "diagnostic gaps" in understanding cash inflows and outflows or profit margins.

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4. Recommendations

• Enhance Financial Transparency:
  Consider voluntarily disclosing a simplified profit and loss account or cash flow statement. This will provide deeper insights into profitability and operational cash flow health, helping stakeholders make informed decisions.

• Monitor Liquidity Regularly:
  Maintain the strong working capital position by managing receivables and payables efficiently to ensure ongoing "healthy cash flow."

• Plan for Growth:
  If expansion is contemplated, prepare for increased working capital needs and potential financing. Early planning and scenario analysis can prevent liquidity strain during growth phases.

• Maintain Compliance:
  Continue timely filing of accounts and confirmation statements to avoid penalties and preserve a strong reputation.

• Consider Risk Diversification:
  Explore opportunities to diversify client base or service offerings within the IT consultancy sector to reduce dependency risks associated with a micro-scale operation.

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